Why do I get so little money when I sell back my ruby?
My friend Ankur tells me that the market is flooded with TREATED GEM stones. These are gem stones that have been altered to look better. This has causes the price of most colored gems to drop dramatically. It costs more money to sort them, than to cut new gems.
Matt Winward of MD Diamonds buys otc (over the counter) color, but he says it is very difficult because gemstones that have been in rings are most likely damaged.
Matt says the cost and time fix a gem makes it cost prohibitive. Also, it is capital intensive to buy color. Not just the initial purchase, but also expensive in terms of education, equipment, and trustworthy people