Just like the stock market has structure, gemstones need infrastructure for value to be realised.

Below is the comparison side-by-side with the stock market, so you can understand instantly why gemstones are NOT straightforward investments.

1. MARKETPLACE (Liquidity Mechanism)

Stock Market:

Exchange (NYSE, SGX, NASDAQ) where you can sell anytime.

Gemstones:

☐ No central exchange
☐ No guaranteed buyer
☐ Value depends on who you know
☐ Time to sell = unpredictable
→ Without liquidity, your gem is only worth what someone is willing to offer.

2. PRICE DISCOVERY SYSTEM

Stock Market:

Real-time pricing, transparent, published daily.

Gemstones:

☐ No public price index
☐ No standard pricing model
☐ Prices vary by country, dealer, season, and trend
→ Value is opaque, not transparent.

3. STANDARDIZATION OF THE ASSET

Stock Market:

One stock = one standard unit. AAPL share is AAPL share.

Gemstones:

☐ Every stone is unique
☐ No identical duplicates
☐ Quality grading is subjective
→ You cannot compare apples to apples.

4. REGULATED CERTIFICATION

Stock Market:

Companies must follow strict audited reporting.

Gemstones:

☐ Labs vary in strictness
☐ Labs certify identity & treatment, NOT price
☐ No regulation on sellers
→ Certification ≠ guarantee of investment value.

5. ENTRY COST TRANSPARENCY

Stock Market:

Broker fees published and minimal.

Gemstones:

☐ Hidden margins
☐ Different markups by dealers
☐ Retail vs wholesale price can differ 3x–10x
→ High friction cost reduces profit.

6. EXIT COST TRANSPARENCY (SELLING FEES)

Stock Market:

Simple: a small brokerage fee.

Gemstones:

☐ Consignment fees
☐ Auction commissions (20%–30%)
☐ Dealer buyback discounts
→ Selling can easily cost you 20–40% of value.

7. MARKET SENTIMENT & DEMAND CYCLE

Stock Market:

Economic cycles influence prices.

Gemstones:

☐ Fashion trends
☐ Regional demand (e.g., India loves rubies)
☐ Political events (e.g., Burma embargo)
☐ Celebrity influence
→ Demand is emotional and unstable.

8. VERIFIED SUPPLY DATA

Stock Market:

Companies report production, profits, reserves.

Gemstones:

☐ No miner reports production
☐ No global supply database
☐ Mines close without notice
→ You never know the real scarcity.

9. STORAGE & MAINTENANCE COSTS

Stock Market:

Zero.

Gemstones:

☐ Safe deposit boxes
☐ Insurance
☐ Cleaning/maintenance
→ Carrying cost eats into returns.

10. EXPERTISE REQUIREMENT

Stock Market:

Retail investors can buy index funds easily.

Gemstones:

☐ High knowledge barrier
☐ Easy to get scammed
☐ Mispricing is common
☐ Professional gemologists needed
→ Without expertise, you lose money fast.

11. TIME HORIZON FOR ACTUAL GROWTH

Stock Market:

Predictable historical returns (6–10% yearly).

Gemstones:

☐ No predictable annual return
☐ Often only appreciate when:

• mines close
• fashion shifts
• a big auction sale happens
  → Most gains = long-term, unpredictable.

12. MARKET MAKER / BROKER ECOSYSTEM

Stock Market:

Banks, brokers, analysts, funds.

Gemstones:

☐ Mostly private dealers
☐ No analyst coverage
☐ No regulated brokers
→ Buyers rely on relationships, not systems.

Gems are not like stocks.
They are like rare art pieces: high value, low liquidity, high expertise required.
You profit only if ALL 12 components align.