Investing in Eternity
How to Avoid Falling for Diamond Myths
Precious stones are not just "a girl’s best friend" but also a potentially lucrative investment thing. However, as in any field, there are pitfalls. Ksenia Kostina—an experienced gemologist and author of expert articles for Forbes and RBC—explains why Cartier is about status, not investments. How the Rapaport price list sets the rules of the game, and how "heated" rubies disguise themselves as nature’s masterpieces. Why a two-carat stone can cost less than a one-carat one, and why blockchain is powerless against cunning counterfeits.
This interview with Ksenia is a behind-the-scenes tour of luxury—no gloss, just hard facts: numbers, real-life examples, and the harsh truth about "eternal values" that demand expert verification.
This interview with Ksenia is a behind-the-scenes tour of luxury—no gloss, just hard facts: numbers, real-life examples, and the harsh truth about "eternal values" that demand expert verification.
Globally, the diamond industry isn’t experiencing significant activity right now, but Russian buyers have shown increased interest over the past year due to several factors. First, the VAT exemption for diamond purchases through banks was finally implemented, and the concept of diamond investments has been heavily promoted in the media.
Second, international sanctions and the exit of global jewelry giants from the Russian market created a favorable environment for domestic jewelry brands to grow—and these brands, in turn, aren’t holding back on influencer marketing budgets.
Additionally, amid economic uncertainty, consumers are generally leaning toward emotionally meaningful purchases, and precious stones and jewelry undoubtedly fall into that category.
Second, international sanctions and the exit of global jewelry giants from the Russian market created a favorable environment for domestic jewelry brands to grow—and these brands, in turn, aren’t holding back on influencer marketing budgets.
Additionally, amid economic uncertainty, consumers are generally leaning toward emotionally meaningful purchases, and precious stones and jewelry undoubtedly fall into that category.
I’d say the average consumer fundamentally lacks an understanding of how diamond pricing works.I run a professional Telegram channel on this topic, where I regularly explain these nuances, so my followers are likely more informed than most. Yet even they often ask me to help them buy ‘a diamond with good clarity and color.’
The biggest misconception? That color and clarity are the most important factors, while size dictates price. In reality, a diamond’s brilliance and fire depend on excellent cut quality—and a 2-carat I VS2 can cost the same as a 1-carat D IF. To the untrained eye, the only visible difference will be size.
Another myth: that diamonds are cheapest in Russia because ‘we mine the rough here’ and ‘sanctions made them cheaper.’ Truthfully, most Russian rough is cut in India, and when these diamonds are re-imported, they’re hit with 30% tariffs and VAT—before brand markups. So no, they’re not a bargain.
The biggest misconception? That color and clarity are the most important factors, while size dictates price. In reality, a diamond’s brilliance and fire depend on excellent cut quality—and a 2-carat I VS2 can cost the same as a 1-carat D IF. To the untrained eye, the only visible difference will be size.
Another myth: that diamonds are cheapest in Russia because ‘we mine the rough here’ and ‘sanctions made them cheaper.’ Truthfully, most Russian rough is cut in India, and when these diamonds are re-imported, they’re hit with 30% tariffs and VAT—before brand markups. So no, they’re not a bargain.
It's quite simple because the more knowledgeable the consumer, the fewer opportunities there are for price manipulation a and the lower the profits. Most sellers prefer keeping customers in the dark about key pricing factors and stone characteristics. They often withhold certificates, avoid disclosing that their rubies or sapphires might be glass-filled, and employ clever wording to mask important details.
For example, some high-end jewelry brands prominently advertise "diamond pieces" on their websites while discreetly noting "LG" (lab-grown) in small print—a distinction only professionals would catch. The consumer remains completely unaware, even when paying millions of rubles. While this isn't direct fraud, it's a deliberate omission that significantly boosts profits compared to transparent business practices.
For example, some high-end jewelry brands prominently advertise "diamond pieces" on their websites while discreetly noting "LG" (lab-grown) in small print—a distinction only professionals would catch. The consumer remains completely unaware, even when paying millions of rubles. While this isn't direct fraud, it's a deliberate omission that significantly boosts profits compared to transparent business practices.
Unfortunately, if you're considering gemstones as a protective asset rather than just something beautiful, they're no less complex than stocks. To make a good choice, you should first study the basics of primary and secondary diamond characteristics. Buy diamonds at prices close to the professional market rate (you can find recent Rapaport price lists online) and only with certification from the Gemological Institute of America (GIA).
When it comes to colored gemstones, it's much harder to navigate without an independent consultant—especially for rubies, sapphires, and emeralds in the $10,000+ range. In any case, the first step is to request a gemstone certificate. This certificate should come from a gemological lab (not the store) and include details about the stone’s characteristics and any treatments. The origin of the stone also plays a key role in pricing for colored gems.
Don’t hesitate to ask whether the stone has been heat-treated to enhance its color, whether it has been filled (and if so, with what). While it’s impossible to explain all the nuances in a few words, you can always input the information you gather into ChatGPT and get fairly reasonable advice on pricing.
When it comes to colored gemstones, it's much harder to navigate without an independent consultant—especially for rubies, sapphires, and emeralds in the $10,000+ range. In any case, the first step is to request a gemstone certificate. This certificate should come from a gemological lab (not the store) and include details about the stone’s characteristics and any treatments. The origin of the stone also plays a key role in pricing for colored gems.
Don’t hesitate to ask whether the stone has been heat-treated to enhance its color, whether it has been filled (and if so, with what). While it’s impossible to explain all the nuances in a few words, you can always input the information you gather into ChatGPT and get fairly reasonable advice on pricing.
I wouldn’t be too optimistic here. When it comes to technology, the much-hyped blockchain can track a stone’s entire journey—from the rough at the mine to the finished piece in a boutique. However, so far, this is mainly used in the context of sanctions on Russian diamonds and, frankly, isn’t much of a concern for the average consumer. Additionally, relatively affordable devices for detecting synthetic diamonds have emerged on the market.
Yet, most gemological innovations are actually tied to new stone treatment methods, often aimed at deceiving not just consumers but even gemological laboratories. Passing off synthetics as natural stones or disguising heat-treated gems as untreated ones using cutting-edge processing techniques—this is what some dealers strive for. The director of SSEF, one of the most respected Swiss gemological labs, shared numerous recent cases with me and admitted that they constantly have to refine their analysis methods to avoid being fooled.
By the way, every lab certificate includes a disclaimer stating that the assessment is based on the analytical methods and technologies available at the time of issuance. History is full of cases where, years later, a ‘Kashmir sapphire’ bought at a prestigious auction turned out to be Ceylon-origin or heat-treated, as revealed by more advanced testing a decade later
Yet, most gemological innovations are actually tied to new stone treatment methods, often aimed at deceiving not just consumers but even gemological laboratories. Passing off synthetics as natural stones or disguising heat-treated gems as untreated ones using cutting-edge processing techniques—this is what some dealers strive for. The director of SSEF, one of the most respected Swiss gemological labs, shared numerous recent cases with me and admitted that they constantly have to refine their analysis methods to avoid being fooled.
By the way, every lab certificate includes a disclaimer stating that the assessment is based on the analytical methods and technologies available at the time of issuance. History is full of cases where, years later, a ‘Kashmir sapphire’ bought at a prestigious auction turned out to be Ceylon-origin or heat-treated, as revealed by more advanced testing a decade later
How do you assess the current surge in interest in diamonds and colored gemstones? What factors are driving this trend?
The main myth is that diamonds from luxury brands are unique and can be a good investment, as boutique prices increase every six months. In reality, the opposite is true: the global professional diamond market is unified, meaning both high-end brands and independent jewelers or dealers source diamonds from the same suppliers. The only difference is that a professional dealer will have a minimal markup, while a luxury brand will charge 300–400%.
Unless we’re talking about iconic designs—like Cartier’s "Nail" bracelet or Bvlgari’s "Serpenti"—but rather classic solitaires, stud earrings, tennis bracelets, and necklaces, recouping the money spent on branded jewelry will be nearly impossible. On the secondary market, these pieces will be valued based on the current Rapaport price, possibly with a very small premium for the brand name.
Even colorless diamonds purchased at professional wholesale prices should not be seen as an investment but rather as a protective asset—a way to preserve wealth. Colored diamonds, on the other hand, appreciate more actively, but it’s impossible to predict whether the price of a particular color or carat size will rise by 2% or 12% per year.
If you want significant appreciation, you should consider colored gemstones. For example, unheated Mozambican rubies have increased in value by 550% over the past 10 years, Brazilian Paraíba tourmaline has risen nearly tenfold since the 2000s, and Colombian emeralds (10 carats and above) doubled in price just between 2020 and 2021.
Unless we’re talking about iconic designs—like Cartier’s "Nail" bracelet or Bvlgari’s "Serpenti"—but rather classic solitaires, stud earrings, tennis bracelets, and necklaces, recouping the money spent on branded jewelry will be nearly impossible. On the secondary market, these pieces will be valued based on the current Rapaport price, possibly with a very small premium for the brand name.
Even colorless diamonds purchased at professional wholesale prices should not be seen as an investment but rather as a protective asset—a way to preserve wealth. Colored diamonds, on the other hand, appreciate more actively, but it’s impossible to predict whether the price of a particular color or carat size will rise by 2% or 12% per year.
If you want significant appreciation, you should consider colored gemstones. For example, unheated Mozambican rubies have increased in value by 550% over the past 10 years, Brazilian Paraíba tourmaline has risen nearly tenfold since the 2000s, and Colombian emeralds (10 carats and above) doubled in price just between 2020 and 2021.
Why are sellers often reluctant to educate consumers about pricing nuances and market specifics?
What are the most common myths consumers have about diamond pricing, and how do these affect their purchasing decisions?
What recommendations would you give to consumers who want to make an informed choice when buying gemstones?
What is the role of technology and innovation in gemology in improving pricing transparency and information accessibility for consumers?
It's clear that prices for colored gemstones will rise exponentially. As treatment technologies advance, untreated stones will become even more valuable. Some are already too expensive due to their rarity and the depletion or closure of certain mines. As a result, high-quality stones with minimal treatment will continue to appreciate—a trend we're already witnessing today.
While global trends are hard to predict with certainty, I’m confident that prices for diamonds and especially colored gemstones will continue to rise. In an era of digital replication, where almost anything can be reproduced, high-net-worth individuals will increasingly value nature’s masterpieces precisely because they are finite and impossible to recreate. Unlike paintings or decorative arts, gemstones offer far greater portability—a crucial advantage in uncertain times—and, of course, deliver deeper emotional satisfaction from ownership. A ring with a unique Burmese ruby or Kashmir sapphire can be gifted for an anniversary or passed down as an heirloom—it’s something that brings joy not just in the moment, but every single day, all while appreciating in value. This is a reality already embraced by Chinese and American buyers, who are driving global prices for colored gemstones to new heights.
I believe the only reason is affordability—lab-grown diamonds are significantly cheaper than natural ones. Unfortunately, in Russia, synthetic diamonds are still sold at inflated prices compared to their actual market value. Set in original designs, they sparkle just like natural stones in boutique displays but cost 2-3 times less. This creates the illusion that they offer similar value at a 'better deal.' But if I told you these stones actually cost just 2% of a natural diamond’s price (comparable to Swarovski crystals), would you wear them with pride? Probably not. Who wants an engagement ring with a 1-carat 'diamond' for $200? Once Russian buyers realize they’re being grossly overcharged for synthetics, demand will collapse.
How do you see the future of the gemstone market given the growing interest from investors and collectors?
Currently, the most valuable gemstones are colored diamonds—red, pink, blue, and green varieties can exceed 3 million per carat. Also, untreated Burmese rubies, Kashmir sapphires, and oil-free Muzo emeralds currently trade at at 150,000−150,000−300,000 per carat. However, those who can afford such rarities rarely purchase them in Russia—it’s simply not economically prudent. While Russian buyers do acquire these stones, transactions typically occur in Dubai or Hong Kong, where pricing, selection, and tax conditions are far more advantageous.
What are your predictions regarding changing consumer preferences for diamonds and colored gemstones in the coming years?
Why do some people prefer lab-grown stones over natural ones?
What are the most expensive gemstones today, and what is the demand for such jewelry in Russia?
What are the key myths about investing in diamonds and colored gemstones? And what does the investment reality actually look like?