Rocks, Slabs, and Minerals as an Investment
Investing in any asset inherently carries risk, yet most investors seek opportunities with minimal risk exposure and maximum potential returns.
Gold and silver are popular investment choices, but have you ever entertained the idea of investing in rocks as a unique asset class?
If you familiarize yourself with the products, acquire knowledge of sound investment practices and cultivate key relationships, it’s possible to transition your hobby into a sustainable occupation.
What To Look For When Investing In Rocks & Minerals
It is essential to have a thorough knowledge of the product when investing in commodities. Prudent investing can be highly lucrative or result in a accumulation of essentially worthless items.
Valuable Tips When Investing in Rocks & Gemstones
Get to know the rock, mineral, or gemstone you are considering purchasing
Knowledge is essential for achieving success in virtually all investment endeavors.
Familiarize yourself with the product you’re considering investing in. Understanding your product enables you to distinguish between low and high-quality materials and make informed purchasing decisions at optimal prices.
As your expertise in identifying exceptional rocks, gems, and minerals grows, you will develop the ability to spot products with significant potential as they enter the market.
Identifying exceptional material prior to its widespread recognition is a strategic approach to optimizing investment returns.
Buy the highest quality material you can afford
The web and local rock shops are full of rocks that are “rare” but are of such poor quality that nobody is interested in them. Don’t get stuck with a bunch of junk you’ll never be able to use or sell.
Understand the potential long term availability of the rock or mineral
Remember that one of the keys to investing in any commodity is the law of supply and demand. Look for fabulous-looking rocks and minerals that are fantastic looking and have the highest possible potential for developing a high demand.
Look for rocks and minerals that have a very limited supply. Many rocks and minerals come from very small deposits and can be available for purchase for a few short years or even months.
Getting Even Higher Returns On Your Investment
Breaking down and selling part of your larger parcel by the individual piece can often pay for itself.
A smart investor can completely cover their original purchase price by keeping half and selling half in smaller individual amounts.
Your profits can further be increased by cutting individual rocks into slabs. Slab saws are available in various sizes. Smaller slab saws can be found for under $500 while large saws can be well over $10,000.
This is where your knowledge of good material can really pay off. Cutting a rock into a smaller quarter of an inch thick slabs can increase your potential profit by over tenfold, however, if you invested poorly and ended up with poor quality slabs, you could end up with a huge rock pile that you can’t do anything with.
Consider investing in newly discovered rocks and minerals.
Once you have a good understanding of what sells well and what does not, you may wish to consider investing in newly discovered rocks and minerals. These newly discovered deposits have the potential to give you the highest returns. Often newly discovered rocks and minerals are offered at relatively low prices until the demand for the material increases. This is often the time that the best quality material is offered for sale in large quantities.
Buying in larger quantities can help maximize your return.
While the product is still readily available it can often be purchased in larger quantities for relatively low prices. Even the most readily available materials eventually become scarce. These often common rocks and minerals usually increase in value as the supply decreases.
Purchasing old collections can present a unique investment opportunity.
Old collections are frequently sold in a single large transaction rather than being sold in smaller lots or individual pieces. Often these old collections contain rare and valuable materials. Product knowledge is the key to profitability when acquiring old collections. These collections are often stored outdoors and can appear to be a worthless accumulation of rocks or, indeed, actually be so.
Breaking it Down Even Further
Lapidary rough can be cut into slabs; however, there is a substantial amount of risk involved when slabbing rough into slabs. Cutting rough helps reveal the true beauty of the rock, thereby substantially increasing its value, or it can result in a total loss, revealing ugly, unusable material.
Slabs can be further refined by cutting them into cabochons for use in jewelry, potentially increasing the value of your investment if executed skillfully and wisely. When cutting slabs into cabochons, it is essential to note that a significant amount of material is wasted, although the returns on investment can be substantial. Machinery for cutting cabochons requires a considerable investment, typically exceeding thousands of dollars.
Taking Advantage of Where You Live
Buying your rocks and minerals locally can have several advantages. No matter where you live, it’s likely that there is some type of rock or mineral that is readily available in your area. Often these rocks and minerals can be collected yourself or purchased at very reasonable prices at your local rock and mineral store. Great rock and mineral specimens may even be found at your local landscaping company.
Get to know your local laws before collecting rocks & minerals. Collecting on public lands is usually available for personal use only. In most cases, any rock collected and sold commercially, must be obtained using a permit.
Your local rock and mineral shops can be a great resource for obtaining great rocks at very reasonable prices. Prices on rocks and minerals can increase dramatically in a very short time and often the local rock shops are slow to adjust the prices to match the current value.
Local gem & mineral shows are also a great opportunity to find some fantastic investment material. Another advantage is that it gives you a good opportunity to see the differences in quality for yourself.
Readily available Rocks and Minerals
Here is a list of rocks and minerals that look great and are still relatively inexpensive (at the time this article was written). Many of these rocks have the potential to become more expensive over time:
- Pope Creek Brecciated Jasper
- Rhodonite
- Gela Monster Jasper
- Volcano Agate
- Owyhee Picture Jasper
- Peruvian Chrysocolla
- Mariposite
- Mexican Crazy Lace Agate
- Cady Mountain Jasper
- Rocky Butte Jasper
- Succor Creek Picture Jasper
- Biggs Picture Jasper
- Deschutes Picture Jasper
- Peruvian Pink Opal
- Indonesian Fossil Coral
- Noreena Jasper
- Rainbow Obsidian