Cleave

AAA

DEFINITION of 'Cleave'

The occurrence of a gemstone breaking into two or more pieces during the cutting or polishing process. Naturally occurring impurities in the stones increase the likelihood that a stone will break apart.

BREAKING DOWN 'Cleave'

Gemstones - especially large ones - are very rare. When large gemstones are found, they are usually sold to investors who pay to have the stones cut and polished. A large gemstone that is successfully cut and polished is many times more valuable than an unpolished stone of similar size. However, gemstone investments include the substantial risk that a stone will cleave during the cutting or polishing process, causing a substantial decrease in its value.

RELATED TERMS
  1. Precious Metals

    A classification of metals that are considered to be rare and/or ...
  2. Four Cs

    The four characteristics used to determine the value of a diamond. ...
  3. Alternative Asset

    Any non-traditional asset with potential economic value that ...
  4. Comparables

    A valuation technique in which a recently sold asset is used ...
  5. Diamonds

    1. An extremely hard gemstone used mainly for jewelry, tools ...
  6. Gemology

    The combined art and science of studying, cutting, valuing, buying ...
Related Articles
  1. Options & Futures

    Introduction To Gemology

    Gemology as an investment alternative may seem glamorous, but it's not for the faint of heart.
  2. Investing

    Using Technical Analysis In The Gold Markets

    The quest for this shiny commodity has made millionaires of paupers and, on the flip side, ruined many an investor.
  3. Options & Futures

    20 Investments You Should Know

    To take advantage of all your investing options, you need to know what your choices are. Here we tell you about the diverse features and advantages of 20 different financial instruments.
  4. Investing News

    Oil or Gold: Which Will Recover First?

    Not sure where oil and gold are headed? The answer is complex.
  5. Economics

    China's Connection to the Recent Gold Crash

    Learn about the connection between the Chinese stock market crash and gold's crash. China is the world's largest source of gold demand.
  6. Economics

    Should You Be Bearish or Bullish on Gold?

    Will gold move higher or lower over the next year?
  7. Chart Advisor

    The Weakness In Commodities Continues

    Traders are looking to ETFs that track the commodities markets for clues of a reversal. We'll take a look at several and provide analysis of what lies ahead.
  8. Mutual Funds & ETFs

    ETF Analysis: Market Vectors Gold Miners

    Learn about Market Vectors Gold Miners, one of the most volatile ETFs in the market, which fell 75% from 2011 to 2015 after climbing 300% from 2008 to 2011.
  9. Economics

    The Story Behind Gold's Mini-Flash Crash

    The gold market was rocked last week by a sudden drop in prices. There are a number of factors that can lead to a flash crash in any market.
  10. Mutual Funds & ETFs

    ETF Analysis: iShares Silver Trust

    Learn about the iShares Silver Trust, an exchange-traded fund that invests primarily in silver and is affected by risks unique to commodities.
RELATED FAQS
  1. What are the primary factors that drive prices in the gold industry?

    Gold has been one of the most sought-after commodities for centuries. It has been used to prop up currencies for countries ... Read Full Answer >>
  2. What are examples of popular companies in the metals and mining sector?

    Some of the most highly traded companies in the metals and mining sector are gold and silver mining stocks, which include ... Read Full Answer >>
  3. What seasonal trends exist in the metals and mining sector?

    There are strong seasonal tendencies in the metals and mining sector. The seasonality of the mining sector is primarily driven ... Read Full Answer >>
  4. What other precious metals are there beyond gold and silver?

    Besides gold and silver, the other precious metals are platinum, palladium, ruthenium, rhodium, osmium, rhenium, germanium, ... Read Full Answer >>
  5. What other options does an investor have to buying physical silver?

    A wide variety of investment options are available to traders wishing to invest in the silver market. Buying physical silver ... Read Full Answer >>
  6. What criteria classify a company as a junior gold miner?

    A junior mining company is an exploration company in search of new deposits of gold, silver, uranium or other precious metals. ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Bear Market

    A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment ...
  2. Alligator Spread

    An unprofitable spread that occurs as a result of large commissions charged on the transaction, regardless of favorable market ...
  3. Tiger Cub Economies

    The four Southeast Asian economies of Indonesia, Malaysia, the Philippines and Thailand. Tiger cub economy indicates that ...
  4. Gorilla

    A company that dominates an industry without having a complete monopoly. A gorilla firm has large control of the pricing ...
  5. Elephants

    Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants ...
  6. Widow's Exemption

    In general terms, a widow's exemption refers to the amount that can be deducted from taxable income by a widow, thereby reducing ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!