Can Jade Slabs Be a Precious Metal Alternative?

Can Jade Slabs Be a Precious Metal Alternative?

I’ve been obsessed with rough jade for a few years now.  I’ve been particularly interested in jade slabs and jade blocks, which are roughed-out or semi-finished pieces of jade that are ready to be fashioned into finished goods.  And this got me thinking.

Would it be possible to invest in jade slabs as a precious metal alternative?  I know this sounds a bit crazy, but bear with me (if you’re the adventurous type).

In order to be considered a reasonable bullion alternative, an item must be a good store of value.  But what makes something a good store of value?

It might be instructive to look at the premiere tangible asset that is already synonymous with that role: precious metals.

Gold and silver are elements possessing exceedingly fine properties.  They are highly resistant to corrosion and oxidation.  They are extremely malleable and ductile.  They are excellent conductors of heat and electricity.  And they are both quite beautiful.

Like the precious metals, jade also has superlative physical properties.

For those who don’t know, there are actually two kinds of true jade – nephrite jade and jadeite jade.  Even though these stones have completely different chemical compositions, they possess very similar physical properties, which is why they are both classified as true jades.

All jade is exceptionally tough.  In fact, jade is tougher than steel!  This is one of the reasons that pre-historic people fashioned jade into axes, daggers and other useful tools.

In addition to being tough, jade is also renowned for its hardness.  Nephrite sports a Mohs hardness of 6.0 to 6.5, while its near-twin jadeite is slightly harder at 6.5 to 7.0.  Although these values don’t rival the hardness of rubies (9.0) or diamonds (10.0), jade is still harder than steel and cannot be scratched with a knife blade.

Jade will also take a very fine polish.  The very best jades can be burnished to a mirror-like finish that looks eerily glass-like in its perfection.  This makes it a superb material for carvings, jewelry and other decorative purposes.

Jade is a rather dense gem as well.  Nephrite has a specific gravity of 2.90 to 3.05 gm/cm3, while jadeite ranges from 3.20 to 3.45 gm/cm3.  Although it is not nearly as dense as gold or silver, jade is substantially denser than the average rock.  This is because most ordinary rocks have a high quartz content, which gives them a specific gravity close to that of quartz – around 2.65 gm/cm3.  It is one of those strange laws of the universe that valuable materials are, more often than not, high density materials.

However, interesting physical properties alone are not enough to endow a material with store of value status.

Durability, for example, is another prerequisite.  Being highly corrosion resistant, gold and silver last pretty much forever.  And they are more or less indestructible.  If you are attempting to destroy precious metals, the best you can do is powder and scatter them, or dissolve them in impractically strong acids.

Jade once again proves itself very similar to gold and silver in terms of its durability.  Archeologists regularly recover fully intact ancient Chinese and Meso-American jade artifacts that have been buried for thousands of years.  If you were to expose a piece of jade to the elements for a few decades, it would remain curiously untouched (other than perhaps growing a bit of moss).  If you were to deposit a specimen of jade in the corner of your basement for a couple centuries, it would fully retain its original appearance and properties.

And the fact that jade is tougher than steel means that the mythical greenstone is nearly impervious to mechanical damage.  Prior to the mid 19th century, the native Maori people of New Zealand used jade clubs called “mere” to crack open the skulls of their enemies in tribal warfare.  Their jade weapons almost always escaped these conflicts undamaged and can be viewed in museums today, hundreds of years later.

In other words, jade is as close to being eternal as any physical substance on earth can hope to get.

Rarity is another attribute that drives the desirability of jade, making it a compelling store of value and an intriguing bullion alternative.  Jade is often found as boulders in alluvial deposits.  And it isn’t uncommon for these water-worn boulders to weigh hundreds of pounds or even tons.

This might seem like a contradiction.  How can anything found in the form of gigantic boulders be rare?

The answer is that most of those boulders are extremely low quality jade that isn’t fit for any kind of use.  Gem quality jade has an unusual combination of saturated color, fine texture and high translucency that is extraordinarily rare in nature.

For example, a jade prospector may sort through tons of rough jade nodules in order to find a single pound of medium quality material.  And that assumes he has been lucky!  A Wyoming prospector called USMiner has posted a series of jade prospecting videos on YouTube that detail the challenges faced in looking for high quality jade.  I’ve posted the second video in his informative “Green Gold” series below, which I highly suggest you watch:

 

 

But a material must possess other attributes besides durability in order to be considered a legitimate store of value.

For instance, a raw material must be usable.  In other words, it must be possible to turn it into a useful or desirable finished good.

Jade fulfills this requirement with flying colors.  Jade jewelry is ubiquitous in the modern world, from bracelets to pendants to earrings.  Jade carving has grown into a cherished global tradition, with a thriving industry centered in China and Hong Kong joined by a fledgling one in New Zealand, Canada and the United States.

The remarkable stone has been treasured for many centuries – particularly in China, where “The Stone of Heaven” as it is known has long been a national obsession.  Today, fine antique jade artifacts from the Chinese Ming (1368 to 1644 AD) and Qing (1644 to 1912 AD) Dynasties, as well as exquisitely carved pieces from the Indian Mughal Empire (1526 to 1857 AD), are avidly collected by wealthy jade enthusiasts worldwide.

Incidentally, historical or cultural significance is another important factor in determining whether an object is a good store of value.  Gold and silver score superbly on this metric, having been equated with money for thousands of years in most societies.

While jade cannot compare with the legendary status of gold’s monetary cultural dominance, it is rapidly finding its own niche nonetheless.  For instance, jade has been associated with high status and prosperity in East Asia for millennia.  In China, Korea, Taiwan, Hong Kong and parts of Southeast Asia, jade has no problem standing shoulder to shoulder with gold and silver as a valuable precious material.

Jade’s history in the West, however, has been somewhat shorter and more ambivalent.  The Spanish conquistadors first encountered the exceptional green stone in Central America in the 16th century when they conquered the Aztec and Mayan civilizations.  However, the Spanish were only interested in gold and silver, not jade.  As a result, the precious stone lay at the periphery of European thought for another 400 years.

It was not until the late 19th and early 20th century that European jewelers began to experiment with jade – undoubtedly because of the growing influence of Orientalism in Western art.  Since that time, jade has gradually been accepted as a bona fide gemstone all over the world.

Rough jade is typically found in rounded nodules with an opaque rind covering the stone.  These nodules are usually formed via hydraulic action when a primary deposit is weathered into a river.  However, somewhat coarser jade nodules can also be formed by wind-blown sand or other debris scouring their surfaces.  When this happens, the stone is called a “slick” or “wind slick”.

Over the course of millions of years, the weathering process tends to erode away any lower quality material, leaving only the hardest, highest quality jade.  This makes rough jade nodules from weathered secondary deposits particularly desirable.

While rock hounds have eagerly collected fine jade slicks and boulders for many decades, everyone else in the West largely ignored the precious “Stone of Heaven”.  But as the Chinese economy boomed over the past 20 years, demand for jade has inexorably risen, driving prices ever higher.   Meanwhile, Westerners have gradually become more familiar with jade’s many fine qualities.  As a result, hard asset investors are beginning to realize that stacking rough jade like they stack gold or silver might be a very profitable, if unconventional, idea.

Unfortunately, the opaque rind on rough jade nodules means that you typically can’t see into the stone in order to assess its quality.  Because of this quirk of the gemstone, jade is sometimes known in China as “the gambling stone“.

This is one of the big reasons why I like jade slabs and jade blocks as investment pieces.  With semi-finished jade, the exterior rind has usually been either mostly or completely cut away, revealing the true quality of the material inside.  This means that when you purchase rough jade slabs or blocks, you have the advantage of pretty much knowing exactly what you’re getting.

Some more traditional precious metal investors might be skeptical of investing in jade.  And if you fall into that category, I completely understand your reluctance.  Jade isn’t for buttoned-down conservative types.  Like most alternative investments, the stone is rather illiquid – so you have to be committed for the long-term when you buy.

And yet when we look at its physical properties, jade compares quite favorably to the precious metals.  It not only looks amazingly beautiful, but also has an unmatched combination of hardness and tenacity.  This renders it one of the most durable substances on earth – easily the equal of gold and silver in this regard.

It is also a very rare gemstone, and getting rarer every day as demand skyrockets.  The easy to mine river deposits have been exhausted within the past few decades, leaving nothing but small, remote alluvial deposits and difficult to access, hard-rock primary deposits.

Jade also has a rich history that has endowed the hallowed material with a special place in East Asian culture.  The West is definitely playing catch-up here, but I think that Westerners will undoubtedly recognize the prized stone as a compelling store of value in the future.  Jade is a luxury raw material par excellence – fit for the very finest jewelry, carvings and objets d’art.

Jade may not be gold or silver, but I believe that jade slabs and jade blocks are an underappreciated bullion alternative for the savvy tangible asset investor.  For those who want to learn more about jade, please read my two investment guides titled “An Alluring Enigma – Rough Jade” and “A Jadeite & Nephrite Jade Investor’s Buying Guide“.

 

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Hand-Faceted 19th Century Old Mine Cut Diamond

Hand-Faceted 19th Century Old Mine Cut Diamond
Photo Credit: MyDiamondZone

Hand-Faceted 19th Century Old Mine Cut Diamond

Buy It Now Price: $795 (price as of 2019; item no longer available)

Pros:

-Sparkling chic is on full display with this hand-faceted, 19th century old mine cut diamond that weighs in at a robust 0.68 carats.

-The face of this old mine cut diamond measures 5.11 mm x 4.69 mm across – a nice size for mounting in either a modern engagement ring or a period setting.

-The old mine cut dominated the diamond trade from the early 18th century until the late 19th century.  Old world diamond cutters followed the octahedral form of the rough in order to minimize waste.  This produced a cushion-shaped stone with a distinctively small table, high crown, large culet and tremendous fire.

-This 19th century old mine cut diamond has an estimated (by the seller) clarity grade of VS1, which is excellent for an antique stone.  Most surviving old cut diamonds have clarities ranging from SI1 to I3, the cleaner examples having been recut long ago.  A VS1 diamond, in contrast to lower clarity stones, will appear absolutely flawless to the naked eye.  It is only under magnification that any inclusions will become apparent.

-The old mine cut was eventually superseded in the 1890s by the old European cut, a more rounded form that was the precursor of today’s modern round brilliant cut.

-This wonderfully charming antique gem is selling at a price of only $1,169 per carat, which is a great deal for a 120+ year old diamond.  And if you’re willing to wait for an eBay Bucks promotion, the effective price could be as much as 10% lower!

-Because of the growing popularity of old mine and old European cut diamonds, modern versions of these stones are being cut today.  However, these computer-assisted imitations will lack the subtle asymmetry and classic charm of the handmade originals.  Happily, this gorgeous specimen is undoubtedly a bona fide 19th century old mine cut diamond that was faceted by hand.

-It boggles the mind that you can own this lovely Victorian era diamond for just $795 – well under a thousand dollars.  But you had better hurry.  This gem currently has 36 watchers on eBay, so I don’t think it will be available for long.

 

Cons:

-This 19th century old mine cut diamond has an estimated (by the seller) color grade of either K or L.  I would personally go with the lower “L” designation.  Although an L-color diamond would be considered undesirable for a freshly-cut stone, it is pretty typical for old cut diamonds.  As a result the gemstone remains desirable, but has a lower value than it would if it had better color.

 

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Vollmer Poured Silver Bars – Art Meets Bullion with VPS

Vollmer Poured Silver Bars - Art Meets Bullion with VPS

Update: Vollmer Poured Silver is now defunct.

I was browsing eBay a few months ago looking for unusual and exceptional tangible assets when I found something truly breathtaking.  Purely by chance, I stumbled across a magnificent hand-poured silver bullion bar emblazoned with the image of a kraken – a mythological sea monster in the form of a giant octopus.  I was enthralled.

I know my way around silver bullion, having written about bullion bars that have a component of collector’s value in the past.  And while I like a good vintage silver bar, I have also come to appreciate the investment potential of modern hand-poured silver bullion bars.

And the silver bar I had just found – with its high-relief sculptural elements and oxidized surfaces – was the absolute finest example I had ever laid my eyes on.  The angry kraken seemed almost alive, as if it was writhing across the bar’s slightly roughened surface.  A small skull and crossbones punched into the bar’s lower corner (along with the maker’s initials, VPS) lent a buccaneer air, completing the masterpiece.

It was utterly unlike any silver art bar I had ever seen before.

There was a catch, though.  It was made by a firm I had never heard of: Vollmer Poured Silver.  I realized immediately that I had to find out as much as I could about this extraordinary company.

Vollmer Poured Silver, also known by the acronym VPS, is a precious metal micro-foundry launched by Devin Vollmer in 2016.  Devin personally designs and hand-pours every art bar that leaves his studio, which is located in the rugged Berkshire Mountains of western Massachusetts.

And what gorgeous silver bars they are!

Devin skillfully weaves skull, dragon and pirate themes into a fantastical tapestry of precious metal delight.  In fact, I cringe a little at the use of the vanilla term “silver bar” to describe some of Devin’s work, which really borders on 3-dimensional sculpture.  Indeed, ultra high relief is one of the hallmarks of Vollmer Poured Silver bars.

I am also quite certain that Vollmer Poured Silver’s Berkshire address is no accident.  This achingly beautiful New England region, from the lush Housatonic River Valley to the imposing heights of Mount Greylock, has been a favorite haunt of artists for centuries.  Many famous creatives – from the sculptor Daniel Chester French (creator of the monumental Lincoln statue in Washington D.C.’s Lincoln Memorial), to the novelists Nathaniel Hawthorne (writer of The House of the Seven Gables) and Herman Melville (author of Moby Dick) – have called these picturesque rolling hills home.  So it isn’t surprising to me that such a talented artist as Devin Vollmer decided to set up shop in the Berkshires.

And make no mistake, Devin is an artist in the classic sense of the word.  He hand-sculpts and hand-carves the molds for every one of his works using mediums as varied as Petrobond, Delft Clay and graphite.  He then employs the ancient lost wax method and various sand-casting techniques to forge his works.  Simply put, Vollmer Poured Silver resides at that unique juncture between art and bullion.

Another factor that makes Vollmer Poured Silver bars so desirable is that fact that many of them are strictly limited in mintage.  It isn’t uncommon for Devin to only produce 5, 10 or 15 specimens of his more complex silver bar designs.  For example, the awe-inspiring kraken-themed bar pictured above was limited to a run of only 5 specimens.

Such small mintage numbers are highly unusual, even in the world of artisan hand-poured silver bullion bars.  For instance, the well-known company Yeager’s Poured Silver (YPS) usually produces limited edition runs of 100, 200 or even 500 bars.  And many YPS bars have uncapped mintages as well (although, to be fair, VPS has a few issues that are also unlimited).

Now please don’t misunderstand me.  I love Yeager’s Poured Silver.  I have happily purchased many of their products in the past, including a one kilo silver bar grab bag that hit all the right notes.  But, mintages aside, there is still a considerable difference between the CNC-assisted graphite mold designs that YPS specializes in and the free-form, hand-sculpting that Vollmer Poured Silver embraces.

Fine art does come at a high price, though.  You can expect to pay between $27 and $30 a troy ounce for VPS bars (with the price of silver hovering around $17) when purchasing directly from the VPS online shop.  Discontinued designs available only on the secondary market can easily exceed $32 a troy ounce.

This represents a substantial premium over bullion value, but one that I feel is well-justified based on Vollmer’s ridiculously low mintages and tremendous artistic skill.  Due to this unique combination of desirable attributes, Vollmer Poured Silver bars typically hold their value in the secondary market quite well.  And there is every probability that they will appreciate in value over time.

I also want to make a clear distinction between VPS hand-poured silver and the so-called silver art bars of the 1970s.  Although sometimes touted as a desirable vintage alternative by shady promoters, 1970s “art” bars really don’t have anything to do with art at all.  They often memorialized random or inconsequential themes, such as the Shriners, signs of the zodiac or go-go dancers, just to name a few.  And they were invariably machine struck via dies, which allowed for unlimited, mass-production runs.

In other words, Vollmer Poured Silver bars are handcrafted works of true art, while 1970s “art” bars are just bullion (and often ugly bullion at that).

Of course, there are other modern hand-poured artisan bar manufacturers out there besides VPS.  Mutiny Metals, MK Barz, Pit Bullion and Backyard Bullion are some of the better known micro-studios currently producing exceptionally beautiful work.  Much like Devin Vollmer, the owners of these companies strive to create unique and alluring hand-cast silver bars.  And while they all succeed in this endeavor, I believe that Vollmer Poured Silver bars stand out as being truly superb.

 

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Vintage 14K Gold U.S. Ruptured Duck Pin From World War II

Vintage 14K Gold U.S. Ruptured Duck Pin From World War II
Photo Credit: Maison Rive

Vintage 14K Gold U.S. Ruptured Duck Pin From World War II

Buy It Now Price: $199.99 (price as of 2019; item no longer available)

Pros:

-This vintage World War II era U.S. military Ruptured Duck pin, also known as the Honorable Service Discharge pin, is made from solid 14 karat gold.

-This vintage military pin measures 0.625 inches (16 mm) across and weighs 1.9 grams (0.0611 troy ounces), excluding the clutch.

-The Honorable Service Discharge pin allowed a veteran to continue wearing his military uniform after being discharged – a point of great importance in the immediate post-World War II era when civilian clothing was often hard to find due to rationing.

-This pin features a screw-back fastener with a threaded post, which is consistent with its 1940s attribution.  This type of fastener was last used during the World War II era when it was replaced by the smooth post, Ballou clutch type.

-According to tradition, the Ruptured Duck pin gained its bizarre nickname because the ungainly eagle emblazoned on the pin looks more like a misshapen duck than a dignified raptor.

-This vintage Ruptured Duck pin is marked “M14K” and “Gordon B. Miller & Company, Cinti. O.” – a respected jewelry manufacturer based in Cincinnati, Ohio.  They specialized in corporate service pins for major American firms like Proctor & Gamble, Glidden, Chevrolet, etc.  Gordon B. Miller operated from the 1930s until 1990 when it was purchased by Jostens, Inc.

–Vintage U.S. military insignia are rapidly gaining the attention of militaria collectors due to the loss of the World War II generation.

-This period pin comes in its original case, which reads “in Recognition of SERVICE to COUNTRY in the U.S. ARMED FORCES WORLD WAR II”.  The inside of the case says “14 Kt. Gold Authorized HONORABLE DISCHARGE EMBLEM – Mfgd. under license by General Motors”.  The reference to GM – the 20th century’s leading car manufacturer – really boosts the appeal of this piece.

-Because this vintage Ruptured Duck pin is rendered in 14 karat gold and comes in its original box, I believe the $200 asking price is justified.  It is quite rare to find World War II U.S. military insignia in solid karat gold, making this example an exceptional investment.

 

Cons:

-The asking price for this piece is definitely on the upper end of the typical range for vintage U.S. military insignia.  However, it is also a tremendously handsome specimen – possibly the finest Ruptured Duck pin I’ve ever seen.  If you are interested but don’t like the $200 price tag, the seller is open to lower offers.

 

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