Should You Invest in Opal?

Are you considering investing in opal?

Unlike traditional investments in metals like gold and silver, opal's value is not influenced by stock market fluctuations. Opal is a rare and precious commodity, prized for its unique beauty and the fact that it cannot be industrialised. Australian opal, in particular, is considered the highest quality and is a safe investment due to its consistent value appreciation driven by global demand and jewellery production.

Why Invest in Opal?

Gemstone prices are generally not correlated with stock or property prices, making them a good option to diversify your portfolio and reduce volatility. Opals, in particular, are a low-risk, high-reward investment because they are becoming increasingly rare. However, it’s important to note that for opals to be considered an investment, they must be kept in storage and insured, not worn as personal jewellery.

Here are a few considerations before you invest in opal:

Why Black Opal is a Prime Investment

Black opals from the Lightning Ridge area, known for their fiery red colour, are widely regarded as the best opal investment due to their rarity and unique patterns. Boulder opals, with their distinct and spectacular colours, are also highly sought after by investors. These gemstones are more affordable and can be collected by anyone, making them accessible investment options. White Opal from either the Lightning Ridge Area or Coober Pedy are also really good investment options and at times can be the most tasteful and affordable choice.

Important Considerations for Opal Investment

Market Demand: With stricter regulations on Opal mining, the supply of these gemstones is decreasing, creating high demand and increasing value.

Growing Popularity: The popularity of opals, particularly in jewellery like engagement rings, has been rising. Media features such as the acclaimed Outback Opal Hunters series have also increased interest in opals, driving up their prices.

Tips for Investing in Opals

1. Learn About Opals: Understanding opal structure, formation, and valuation is crucial. Our blog on valuing opal is a good starting point.
2. Body Tone and Colour: Black opals (N1 to N4) are the rarest and most valuable. Dark opals (N5 and N6) and light opals (N7 and N8) can also fetch high prices. White opals (N9) are less valuable but still a definite favourite for collectors.
3. Fossil Opals: These are rare and highly valued for their historical and scientific significance. The Virgin Rainbow belemnite fossil opal, for example, sold for a whopping $1 million.
4. Source: Buy from reputable sources, preferably trusted Australian sellers, to ensure authenticity and fair pricing. 
5. Fossil Opals: These often have imperfections but can be incredibly valuable. You can be pleasantly surprised if you get them valued by a third party, especially from recognised valuing committees.
6. Opal Carvings: These are considered risky investments because the value is often in the artistry rather than the opal itself. If you do invest, ensure the carving comes from respected Australian artists, and get a second opinion on its value.

Opals are a unique and beautiful addition to any investment portfolio, offering the potential for significant appreciation over time. As with any investment, thorough research and careful selection are key to maximising returns.

Chat with Iona today on all things opal.