What is 'Gemology'

Gemology is the combined art and science of studying, cutting, valuing, buying and selling precious stones. Some of the most precious stones that gemologists deal in include diamonds, rubies, sapphires and emeralds. 

BREAKING DOWN 'Gemology'

Gemology is a type of mineralogy that specifically focuses on the study of precious gems, both natural and those composed of artificial, manmade materials. Some jewelers are gemologists. Appraisers who evaluate the value of gemstones should also be a gemologist, or at least have studied extensively to master the most important aspects of determining a gem’s condition and value.

With advances in gemstone synthesis, gemology has become a much more important field of study. Industry professionals who are often regarded as the most highly trained and educated have gone through the steps of becoming certified gemologists. A certified gemologist is an expert in the field who has completed intense training and gone through advanced education in various gemstone areas. Often, they will specialize in a specific area of the business or a particular type of stone. Many gemologists specialize in the study and evaluation of diamonds.

Gemologists value stones based on a number of factors, including cut, color, quality and clarity. Many people are familiar with a similar group of criteria of gemstone evaluation that is used in assessing diamonds. For diamonds, the factors are generally what is known as the 4 Cs: color, clarity, cut and carat.

Gemology and gemstone investing

When returns in the stock market decline, aggressive investors often seek out alternative investments that hold more promise of increasing returns on invested capital. Precious gems, in particular those that are rare or of exceptional quality, have a high likelihood of at least retaining their value, and are often likely to increase in value. However, they are not an asset that may be as easy to liquidate as some other types of investments if there is an urgent need for cash. This is especially true for expensive, precious stones that would appeal to an elite level of buyer. Gemstone investing can seem exciting to people who want to make quick returns, but it is highly speculative and should be left to experienced professionals.

The term investment-grade is often tossed around by those who want to sell gems or try to convince other people to invest in them. However, this is controversial and frowned upon by industry leaders, as there are no formal standards for what constitutes an investment-grade gemstone.  
 

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