Diamond Investment
DIAMONDS AS INVESTMENTS
In the last 20 years, the price of the rare natural coloured diamonds like, for example, 1.0-karat Fancy Intense Pink, has raised 30 times. The investor’s desire to find an alternative investment instrument, capable of guaranteeing long-term capital preservation for future generations, is the main reason behind this growth.
ADVENTAGES OF INVESTING IN DIAMONDS:
1. The concentration of large sums of money in a small stone
According to the Rapaport, a 1.0-carat best-quality white diamond was worth $20,000 before tax in December 2021. Or, for example, a 2.02 carat (0.4 gram) Fancy Intense Blue diamond was sold by Sotheby’s in November 2018 for $3,354,041.
2. Compact storage
Lightweight small diamonds can be stored in a safe deposit box or in a home safe.
3. Transportability
Diamonds are easy to move around the world, and if an investor finds himself in a crisis in one country, he can sell a diamond in another country.
4. You can use the diamond for as long as you like
Diamonds don´t have an expiration date and don´t go out of fashion. Diamonds are forever.
5. Diamonds are almost unaffected by inflation
Over the entire period of diamond sales, they have proven to be a reliable means of capital preservation.
6. Diamonds can be used as jewellery and not just stored in a safe
Such jewellery can be the beginning of a family jewellery collection.
7. Long term investment
Diamonds are a natural material, the amount of which doesn´t increase. Diamond production is declining, which leads to a constant stable increase in price of diamonds. For example, in 2020, the Argyle diamond mine was closed, this led to a reduction in the production of pink diamonds in the world by almost 90%. Consequently, prices for already very expensive pink diamonds will rise even more.
CHARACTERISTICS OF INVESTMENT-GRADE DIAMONDS
Investment grade diamonds are white diamonds with the weight starting from 1 carat, of the best colour (D, E, F) and clarity (IF, VVS1, VVS2), triple-EX level (perfect cut, polish, and symmetry), without any fluorescence. Investment-grade coloured diamonds include monochrome yellow, pink, blue, and red diamonds of the maximum intense colour.
RISKS
The diamond market is flooded with a vast amount of all kinds of modified or counterfeit diamonds – moissanite, refined diamonds, synthetic or artificially grown diamonds. The client has to be absolutely confident in the quality of the purchased diamond, reliability of the seller and the mediator.
It is recommended to buy only those investment-grade diamonds that have GIA (Gemmological Institute of America) certificate with the certificate number marked on the stone. The selling company should be at least 20 years on the market, have a Rapaport (diamond exchange) registration, and a RapNet number, and be included by gia.edu in the list of reliable diamond sellers.
