As you can see, gems follow a cycle of use and changing hands that can continue for decades or even centuries, and it is here that the true value of a gemstone is made manifest. Stories are often heard of a person taking a recently bought gemstone to a pawnshop and only being able to get a fraction of the purchase price. Merchants who deal in gemstones must maintain a storefront, employ people, and carry inventory; the retail price includes, besides the value if the gemstone itself, the costs of production, sales, and general administrative expenses. It is difficult to price an item on the spot, and when trying to sell something under duress, one cannot help if the price turns out somewhat low. The asset value of gemstones is not of the type where an item can be sold at or near the initial cost after only a short time. Rather, it is important to understand that their value lies in the fact that they can be worn and fully enjoyed over long periods of time, and still retain their value. Index Back