Investing in Gems with Charlotte Barbotin-Larrieu

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It’s a well-known fact that gemstones offer an attractive investment opportunity for many and when done properly, can yield some handsome returns. Unlike many other collectibles, gemstones are an extremely compact asset that can, although not recommended, be carried in a pocket. Historically gemstones have seen an exponential increase in value. We were keen to find out more about the complexities of investing in gems from certified professional and jewellery designer: Charlotte Barbotin-Larrieu.

Charlotte is a bubbly young woman who managed to make her childhood dream, of working with gemstones and designing jewellery, into reality. After switching from a successful fashion career in marketing at Prada and Louis Vuitton, Charlotte studied gemology at ING Paris and graduated as a gemologist. Shortly afterwards, she moved back to the South of France and set up Monaco IIG ‘Investing in Gems’ to help spread her passion for stones and more importantly provide clients with advice on precious gems. In 2021, the young entrepreneur launched her very own jewellery brand ‘Charlotte.B’ to give life to creations she had until then only imagined as a child. Each of her designs combines ancestral know-how with modern production techniques, but the design process always starts with the search for the perfect stone.

Where does your passion for jewellery and stones stem from?

As a child I recall spending hours wandering around my mother’s fashion and interior concept stores in Paris and Saint Remy de Provence. I remember vividly being drawn to the jewellery, which she’d use to enhance the collections in store, hold the stones under the sunlight to make them shine. I’d sit there and dream of designing jewellery that my mum could put in her stores.

Can you tell us a bit about your journey from fashion to precious stones?

After my studies, I went into fashion, working for luxury international brands until I moved to Monaco where I decided that my real passion was gemstones. I started to study gemology at ING Paris graduating as a gemologist and registered at FEEG.

I created my company in Monaco IIG 'Investing in Gems" to promote and advise on precious stones. My strong flair for adventure meant I could not stay and wait for traders to show me their stones, I wanted to go and visit the various mining countries to choose my stones directly at source and get a better understanding of the markets and the mentality of the persons behind every stage . My first trip was in Sri Lanka, the land of sapphires.

When did you start creating bespoke and timeless jewellery and why? Where did the idea come from?

As a child I dreamt of designing the jewellery that my mum needed to enhance her clothes collection. I saw a jewel as the last touch on a woman’s style to make her elegant, sexy, classy or wild.

When I have a stone in my hand, I start dreaming about how I could stage this gem to make it come alive. I draw my inspiration from everyday life; it can be a building, a flower, an animal or even a shadow on a wall. Every little detail can give me inspiration. I design jewellery that reflects my life’s philosophy; a woman should be simple but elegant, discreet but sexy, sweet but with character and be able to feel comfortable in any given situation.

What are the key features a stone should have to make an investment and how do you advise your clients who wish to invest in precious stones?

There are various categories of investment and to simplify that I would divide them in two segments: Investing in diamonds and investing in coloured stones.

1) Investing in diamonds

This is a world with specific and charted rules and regulations. You have a stock exchange where diamonds are traded on a daily basis with price per carat/clarity/cut and colour. It is all about the price you buy and it depends on the contact you have in this very closed environment.

I would almost always advise my client to buy the best quality possible, much better to have a small but perfect diamond, it will always appreciate in value and be very liquid as an investment.

You have also to anticipate the trends and today coloured diamonds are what the investors and the professionals are looking for and their prices have increased exponentially.

2) Investing in coloured stones

This is the most interesting but tricky part of my job. Interesting because you have so many different stones to choose from, each of them with such a different soul. All with history and symbolism in our society. They all come from different regions and that will influence the colour, the brilliance and intensity.

Tricky because you have so many criteria to ponder before choosing your stone:

Colour : so many stones and so many colours
Purity: Purity is always recommended but the emerald has very specific inclusions called "gardens" or even a beautiful natural sapphire can have "butterfly wing" inclusions, which correspond to the sapphire from Sri Lanka for example.
Rarity: this depends on the country of origin, lifespan of the mines, the geopolitical situation like embargoes, wars...
Trends: anticipate the new trends in the fashion and jewellery business is vital to acquire the stones before the frenzy.

I always tell my clients that, first of all, they must fall in love with the stone and really enjoy its colour, shape, light. The stone must provoke an emotion, then the proportion is essential as the final aim for any stone is to be mounted in a jewel. Therefore the 1/3 - 2/3 rule is very important. This refers to the proportions of a stone. In order to obtain the best dispersion (ie. intensity of the colour via the light) the size is more 1/3 for the table and2/3 from the crown to the yoke, which refers to the middle to the tip of the stone.

What are the factors that push a client to invest in precious stones?

Since ancient times, precious stones have been a mean of wealth and payment at the same level as gold. Stones have the advantage of being easily transportable, with no control from authorities, easy to store, wearable.

With so many ways of selling your stones nowadays, the market has become much more liquid, making precious stones an asset class of its own and very good diversification in any portfolio with low level entry that fits anyone.

Which stone holds the most value or speculative?

This is irrelevant. Regardless of the stone, if it has the right colour, rarity and clarity it will hold its value whatever the size.

What are the risk free stones?

Currently, risks are very limited as the sale process has become easier and therefore more liquid. You just need to have someone advising you properly and selecting the right stones. I would recommend avoiding artificial and modern processes that enhance the colour of certain stones.

Can you recover from a bad buy on a gem?

Not really, but if you like it then you can always have the pleasure of wearing it.

Are gems worth more cut or rough?

Obviously cut, as the cut is an important criteria of the stone’s value.

Is re-cutting an option to increase value?

Re-cutting will not increase the value but increase its potential sale.