An investor always looks at three parameters: risk, return, and capital preservation. Any «alternative» ends up at the intersection of these coordinates — whether it’s gemstones, diamonds, or works of art. Historical returns differ across these segments.
The art market has shown impressive growth in select cases –
individual works have sold for many times their initial estimates. But volatility is also high: in 2024 the global market fell by 12% to about $57.5 billion after peaking at $65 billion a year earlier. Gemstones move differently: colored stones tend to rise faster—rare sapphires, rubies, and emeralds show steady upside over the long term, but they demand fine expertise and patience. Diamonds remain the most «bank-like» instrument: standardization via GIA and HRD puts them closest to currency in the world of physical assets.
The safety of ownership depends on cost structure. Art requires expensive storage and insurance; transport is costly, especially for large paintings or sculptures. For gemstones and diamonds, the infrastructure is simpler: insuring a collection averages 1–2% per year of its value, transportation is compact, and no special premises are needed.
Trust is a separate issue. In art, it’s provenance: ownership history, exhibition mentions, catalogue records. In gemstones, it’s lab certificates. GIA or HRD documents turn a diamond into a standard that banks, private offices, and auctions are ready to work with. Authentication technologies keep improving from laser inscriptions to digital databases which minimizes counterfeiting risk.
In short, diamonds and colored stones are reliable tools for capital protection. They are compact, liquid, straightforward to value, and relatively inexpensive to maintain. Art remains an asset with high upside and status value, but it requires time, significant expenses, and a willingness to accept high volatility.
