Mermaid Waters, Queensland -- (SBWIRE) -- 03/25/2014 -- Financial planning principles state the best way to accumulate wealth is through low-cost diversified investments over long periods of time. When an investor reaches a certain point of stock market diversification, alternative investments such as certified gemstones, mineral rights, and antiques present the next opportunity for wealth accumulation. By owning Certified gemstones, a portfolio hedges against inflation.
Inflation occurs when the price of owning something increases but the purchasing power of currency decreases. An easy metric to judge common inflation is to watch milk, egg, and gas prices. When those consumer goods increase yet wages remain stagnant, inflation has set in. While owning certified gemstones to protect wealth from inflation may seem like a tough connection to make, inflationary periods typically stem from social unrest. When social unrest sets in, government investments become unattractive and society turns to what they can touch and feel, namely certified gemstones.
Purchase certified gemstones directly from a reputable dealer. Many times dealers have websites where customers can get a feel for inventory before making a purchasing decision. Often the dealer websites include extensive photos and descriptions. Reputable certified gemstone dealers should be willing to share every minute detail about the certified gemstone with consumers before purchase. If questions are met by resistance, remove from that transaction.
Finding “diamonds in the rough” may be a clever statement but not in the best interest of the investor. For maximum certified gemstone appreciation, consumers should look for less expensive and unique certified gemstones. Choose natural gems that the market has not exploited such as opals. If put into stock market terms, investors should choose “value gems” which means the market has priced the gems lower than expected future returns.
Profiting from certified gemstones is not a quick turn-around and must be taken seriously. Only serious buyer that do his or her homework should consider the purchase of a certified natural gemstone. The goal is to purchase a unique undervalued certified gemstone today and hold it until the market value increases. The market could increase next week, but a more realistic expectation is that the gemstone market will take many years to boost the value of purchase. Many times the value boost will be triggered by a large stock market decline. Investor reaction to large stock market declines is termed a “flight to quality.” A flight to quality simply means investors liquidate stock market holdings and invest in cash and real assets they can touch, like certified gemstones.
It is imperative that consumers work with a gem dealer or wholesaler that is completely transparent and hides nothing. Gem certification gives buyers the assurance that they are buying the real thing. If anyone is willing to do their homework, own the gem patiently until the market increases, and demand legitimacy during the purchase process, then certified gemstone ownership is for them. Diversification of portfolio assets is incredibly important to wealth accumulation. Making the proper certified gemstone purchase will take nest egg to the next level.
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23 surfers av mermaid waters Qld 4218 Australia
Ph 07 55260703