Rubin Investments: A Better Alternative to Gold?

Investing in gemstones, particularly rubies, is being presented as an alternative to traditional assets like stocks and gold. According to Alexander Streb, CEO of Investmentpunk Academy GmbH and Deutsche Edelsteinhaus, only a select few gemstones are truly investable. He highlights that chosen gemstones, such as high-quality rubins, possess the potential to retain and even increase their value, independent of market fluctuations.

Streb, who has prior experience as a wealth manager, has focused on exploring the investment potential of gemstones. He argues that these stones, whose supply and demand are not tied to financial market news or central bank decisions, offer a unique safe haven. This lack of correlation makes them an attractive option for investors seeking to diversify their portfolios and hedge against market volatility.

Only a small percentage of the world's gemstones, estimated at 12 out of approximately 1,200 known species, meet the criteria for investment-grade status. These criteria include rarity, a functioning global trade market, demonstrable price development, and certification of quality from independent laboratories. Examples of such stones include specific rubins and sapphires.

A high-quality, two-carat ruby can cost between €70,000 and €90,000, offering a high value density. The price development has been notable, with top-quality rubins doubling in value in recent years and continuing to appreciate. While investing in gemstones requires expertise and significant capital, it presents a strategic opportunity for certain investors.