Current yield disappointing? Why this real asset alternative offers better protection and higher returns!

Why the current yield is no longer sufficient

The yield to maturity has long been considered a reliable indicator of secure returns on medium to long-term bonds. However, the persistently low interest rate level that has prevailed since the 2008 financial crisis has had a major impact on this type of investment. The drastic cut in interest rates by central banks, which is intended to stimulate economic growth, has caused the returns on traditional bonds to fall sharply. For investors, this means that the returns on many government and corporate bonds often barely compensate for the rate of inflation. In some cases, real returns are even negative, which means that the invested capital loses value despite being a “safe” investment. Bonds were once considered a safe haven, but today they can no longer fulfill their promises of stable returns and capital preservation. The increased risk of inflation is also undermining confidence in the yield to maturity. Higher living costs and production prices mean that invested capital loses purchasing power. Political instability, trade conflicts and economic uncertainty are also putting additional strain on the stability of the bond markets. The dependence on the decisions of the central banks also makes planning security difficult for investors. In summary, the current yield no longer offers the stability and security that it once did. In the face of volatile markets and low returns, investors are increasingly looking for alternatives that offer real protection and growth opportunities.

Why alternative tangible assets are attractive

In the face of economic uncertainty, more and more investors are turning to alternative real assets. Unlike traditional financial products such as bonds or stocks, which are highly affected by interest rate fluctuations and market turbulence, physical assets such as precious metals, real estate, works of art and colored gemstones offer a more stable form of store of value.
A major advantage of alternative assets is their protection against inflation. While paper money can lose purchasing power, physical goods often remain stable or even increase in value. Regardless of central bank decisions or currency fluctuations, they offer reliable protection for investors who rely on long-term security.
In addition, tangible assets allow portfolio diversification. In times of volatile markets, these physical goods help to spread risks and ensure stable returns. They have the potential to not only maintain their value but also increase it, especially when demand for these rare and high-quality assets increases.

The need for better alternatives

The low returns on traditional bonds and the uncertainty on the global financial markets have disappointed many investors. In an environment in which interest income barely compensates for inflation, interest in more stable and lucrative investment opportunities is growing. Investors are increasingly looking for options that offer not only security but also long-term value growth.
Traditional interest income is often not enough, especially when it provides little or no real return. Therefore, the focus is shifting to alternative tangible assets that exist independently of short-term market movements. These physical assets, such as real estate, works of art and precious metals, provide a tangible basis for investment and are not tied to interest rates or global economic developments.
The stability and independence of physical assets make them a solid basis for a diversified portfolio. By investing in rare and durable physical goods, investors can overcome short-term uncertainty and create long-term stability. Such assets not only offer security, but also the opportunity for value growth, especially when demand increases.

Colored gemstones: The better tangible asset alternative to the current yield

As the current yield becomes increasingly less attractive, alternative tangible assets such as colored gemstones are becoming more and more important. The most important advantages of colored gemstones as a stable and independent investment are shown below.

Gemstones such as rubies, sapphires and emeralds are known for their long-term stability. They retain their value for decades and thus offer a level of security that digital assets often cannot guarantee.

Colored gemstones protect wealth from inflation, similar to precious metals. Since their value is not tied to currencies, they remain stable even when traditional currencies lose purchasing power.

Unlike digital assets, which are subject to the fluctuations of financial markets, colored gemstones remain unaffected by such developments. Their value is not affected by short-term market movements, making them a reliable part of a diversified portfolio.

The natural scarcity of high-quality colored gemstones ensures constant demand. Particularly rare specimens can see continuous price increases, making them an attractive way to increase capital in the long term.

Unlike digital assets, colored gemstones offer real, physical value. This tangible property gives investors the feeling of owning a solid and durable asset that will retain its value even in uncertain times.

By integrating colored gemstones into a portfolio, investors can reduce their dependence on volatile investments such as stocks or cryptocurrencies. This contributes to more comprehensive risk management and protects assets even in economically uncertain times.

In many countries, including Germany, investors benefit from tax incentives when investing in colored gemstones. Profits from the sale of such gemstones are tax-free after a one-year holding period, making them particularly attractive for long-term investors.

Transactions involving colored gemstones are often discreet and without public records. This anonymity makes them a preferred choice for investors who value their privacy and want to invest anonymously.

Colored gemstones are compact assets with a high value density. They allow significant value to be stored in minimal space, which is particularly advantageous in times of crisis when mobility and security are required.

In addition to their financial value, colored gemstones also offer aesthetic and cultural appeal. They can be worn and admired as jewelry, making them an emotionally enriching investment. This dual function as an investment and a luxury item gives them a unique status that sets them apart from many other forms of investment.

Which gemstones are particularly suitable for investments?

Certain gemstones are particularly suitable for investment due to their rarity, stability and demand. Here are the best gemstones that have proven themselves as long-term investments:

Rubies are considered the kings of gemstones and are especially known for their deep red color. They symbolize love, passion and energy and are highly valued for their hardness and durability.

  • Advantages:
    • Very high demand, especially for high quality stones.
    • Strong price increases for rarity and exceptional quality, especially recently worldwide.
  • Disadvantages:
    • Quality assessment can be challenging for laypeople.
    • High quality rubies are very rare and can be very expensive.

Sapphires, known for their stunning blue color, represent wisdom and nobility. They are the second hardest gemstones after rubies and impress with their variety in color and origin.

  • Advantages:
    • Wide variety of colors, from deep blue to rare pink and orange tones.
    • High durability, making it particularly suitable for jewelry and everyday use.
  • Disadvantages:
    • The color assessment can be subjective, which influences the pricing.
    • Some color variations are less well known and may be more difficult to sell.

Emeralds are known for their bright green color and symbolize renewal. Their softness requires special care during processing and daily use.

  • Advantages:
    • Strong demand for high quality stones with intense color and clarity.
    • Unique inclusions (so-called jardin) can increase uniqueness and value.
  • Disadvantages:
    • Emeralds are more delicate than rubies and sapphires, which increases the risk of damage.
    • Assessing quality, particularly in terms of clarity, can be complex.

Spinels are colorful gemstones that stand out with their bright red, blue and purple tones. Their increasing popularity makes them an interesting alternative to the more well-known rubies and sapphires.

Advantages:

  • Diverse, bright colors and attractive rarity.
  • Steady price increases, especially for red and blue specimens.

Disadvantages:

  • Less well known, which could limit demand.
  • Differences in quality are difficult for laypeople to assess.

The tsavorite garnet is a rare, green alternative to the emerald. Its intense color and robustness make it a valuable investment that is often cheaper than emeralds but offers similar potential.

Advantages:

  • Intense color and high resistance.
  • Attractive potential for appreciation, especially for larger stones.

Disadvantages:

  • Less well known, so resale may be more challenging.
  • High-quality specimens are rare and can be more expensive.

Important considerations before buying colored gemstones

Quality & the 4 Cs

The value of a colored gemstone depends largely on the “4 Cs”: cut, color, clarity and carat (carat weight). These criteria determine the price. An intense red for rubies or a deep blue for sapphires increases the value, while inclusions and poor cuts reduce it. Those who know the “4 Cs” make better purchasing decisions.

Origin & Certificates of Authenticity

The origin influences the value of a gemstone, as certain locations are known for their high quality. A certificate of authenticity from a recognized institute that confirms authenticity and quality is also important. Such certificates make later resale easier and create trust.

market knowledge & trends

Successful investing in gemstones requires an understanding of the market. Price developments can vary depending on supply and demand. A well-founded market analysis and expert advice help to identify future trends and invest strategically. Advice is particularly valuable for beginners.

Long-term perspective & diversification

Gemstones are suitable as long-term investments. Their value increases over years, not in the short term. By diversifying into different types of gemstones such as rubies, sapphires or emeralds, the risk can be spread and the stability of the portfolio increased.

The German Gemstone House – your reliable partner for safe gemstone investments

Investing in colored gemstones is an attractive way to diversify a portfolio and stabilize it in the long term. However, as with any valuable investment, there are specific challenges that must be carefully considered. These include the precise assessment of quality and authenticity, a comprehensive understanding of market dynamics, and the safe storage and insurance of the gemstones. Deutsche Edelsteinhaus offers tailor-made solutions to overcome precisely these challenges and enable you to make a safe, profitable investment in top colored gemstones.

Reliable pricing is essential when buying gemstones. For this reason, we do not determine the price internally, but rather by a neutral, independent body: an expert for colored gemstones, publicly appointed and sworn in by the Chamber of Industry and Commerce, carefully evaluates each stone based on the internationally recognized 4 Cs (cut, carat weight, color, clarity) and determines the current market value in a report. This way, we ensure that you always pay a fair and market-based price.

Successful investments in colored gemstones require a deep understanding of the market. Deutsche Edelsteinhaus offers you extensive advisory services to help investors navigate the gemstone market. Our experts will inform you about current market trends, price developments and the most valuable and rarest stones. Thanks to this expertise, you can make informed decisions and select the best gemstones that meet your individual investment goals.

A long-term perspective is crucial for successful investments in gemstones. The German Gemstone House offers an exclusive selection of 12 first-class investment colored gemstones that allow you to build a diversified portfolio. From rubies to sapphires to emeralds and other rare stones – our range covers different color variants, types and price segments so that you can spread your risk and maximize the chances of increasing value. With a well-thought-out diversification strategy, you are in the best position to achieve stable returns in the long term.

Safely storing your gemstones is an essential part of a successful investment strategy. Gemstones are compact and valuable, which makes them particularly easy to transport, but also requires special security precautions. Deutsche Edelsteinhaus offers you professional advice and solutions for the safe storage of your gemstones, whether in a private safe or specialised high-security storage facilities. This way you can be sure that your valuable investments are well protected, today and in the future.

In addition to the classic investment services, Deutsche Edelsteinhaus also supports its customers with individual advice. We know that every investment is unique, and therefore we offer tailor-made solutions that are precisely tailored to your needs. Our experienced team will help you find the right time to buy or sell and will support you with all questions about trading in colored gemstones. This way, you can be sure that you are always well advised and will get the most out of your investment.

Conclusion: Colored gemstones as a solid alternative to the current yield

Compared to the current yield, colored gemstones offer a number of compelling advantages that make them an attractive investment option for investors who think long-term. Their rarity and continuous demand ensure stable performance over many years. Since they are not influenced by the fluctuations of the financial markets, colored gemstones offer natural protection against inflation and economic uncertainty. In contrast to the current yield, which delivers stagnant or declining returns in the current economic situation, gemstones show strong potential for value appreciation. As physical, tangible assets, they retain their value and offer long-term security that digital or purely financial investments cannot always guarantee. In addition, they are mobile and can be easily transported and stored safely, which makes them particularly crisis-proof. Overall, colored gemstones offer an excellent way to diversify a portfolio and stabilize it in the long term. They represent a solid alternative for investors who are not only looking for returns, but also for security and stability. Due to their resilience and independence, colored gemstones are particularly suitable for securing long-term investment strategies and ensuring calm and stability in times of economic uncertainty.

“Discover the exclusive world of investment colored gemstones with the German Gemstone House – your trusted partner for exquisite and valuable gemstone investments. Whether you want to diversify your portfolio or are looking for a unique addition to your investment alongside gold, Deutsche Edelsteinhaus offers you a carefully selected collection of rubies, sapphires, emeralds and much more. All our gemstones are of the highest quality and certified authenticity to guarantee you safety and potential for value appreciation.
Take the first step towards a bright future today and visit our website to learn more about our exclusive offers. Be enchanted by the beauty and variety of our colored gemstones and find the perfect piece that not only represents a valuable investment but will also last for generations.

Don’t miss the opportunity to become part of the fascinating world of colored gemstones. Contact Deutsche Edelsteinhaus today to learn more about your investment opportunities and how we can help you achieve your goals. Take the first step towards a safe, profitable and brilliant investment – ​​with the German Gemstone House.”

Oliver Klemaier, German Gemstone House
Call directly
Consult