Astronomical profits and a large dose of adrenaline? No, you will not see that in diamonds. In actuality, you will find peace and a sense of security. You will also benefit from the mobility and discretion of the diamond investment.
- How much profit does a diamond bring? There is no definite answer here. Much depends on the parameters of a particular stone, its weight, color, class and purity. A one-carat stone with the best parameters, in the last 10 years it has gained more than 60% in value. With larger stones, the increases were even more significant, from 8% to 16% per annum.
- Where do diamond prices come from?
Their primary determinant is global indices; including, above all, the most popular available on the web and constantly updated ‘The Rapaport Diamond Report’. Knowing the parameters of your stone, in the statement you should search for the appropriate rubric and read the value assigned to it. However, this price should be treated as a benchmark for determining the value of a particular transaction – it is obvious that the buyer will want to buy the diamond as cheaply as possible, and the seller’s intention will be to get as much as possible. The above conditions make the diamond a long-term investment. Investors should remember that a truly profitable sale of a diamond can occur after 5 years and beyond from the moment of its purchase.
Safe as a diamond
Diamonds can reward loyalty to their owners. First of all, they are a very safe investment of capital; in the space of more than a hundred years since their exchange rate has been quoted, they have only lost value three times for a short time, the last of which was in 2008. Diamonds have never in history recorded such rapid changes in the course as it happens in gold. The diamond market is closed and monitored by its own supervisory institutions. It is difficult to speculate on it, it also shows independence from politics and the economy. The guardian of the safety of a diamond investment is also a reliable law of supply and demand. The supply is getting smaller, because the deposits are depleted. According to De Beers, the world’s largest mining company, by 2020 there will be no more large, multi-carat stones in the ground. Mines in their reports reveal a decrease in production, but the price of raw material is growing in the last 5 years by as much as 70%. The stay, in turn, not only does not decrease, but increases. The enriching societies of China or India are today the largest recipients of diamond jewellery, and without diamonds there can also be no industry. Bain & Company forecasts that global demand for diamonds will double over the next seven years. In the case of diamonds, safety can also be understood literally. Unlike other types of alternative investments, such as art, antiques or precious spirits, diamonds are not easy to destroy. It will not be harmed by water, acids or alkalis, it will not be burned by ordinary homemade brittle. With a hammer, it can be successfully broken). It is also easy to shield a diamond from a fire (however, it must be remembered that a diamond, although extremely hard, may attract envious or curious eyes, but vice versa – a diamond can also be beautifully displayed in jewellery. The minimum size allows for its full mobility – in the pocket of trousers you can discreetly move all your property (diamond is ordinary coal for detectors). And finally, the universality of the diamond allows it to be treated as a world currency, accepted everywhere and valued the same everywhere.
Where to sell your diamonds
A diamond investment is incomparably easier to liquidate than, for example, an investment in real estate. There are many possibilities of selling a diamond, and the choice of the right one depends on the investor himself and on whether he cares more about the time or the best possible price. The fastest diamond can be sold at the point of purchase of precious stones. You can also ask for help from the company from which the investment diamond was purchased (if the company offers such a service – it is worth asking about it before buying).
You can also successfully go, for example, to the Belgian Antwerp – the cradle of the diamond market. In the Diamond Quarter district, everyone can easily find many shops buying diamonds, the main issue will be to get the best price (based on the already mentioned Index The Rapaport Diamond Report).
- How to start investing?
“I recommend novice investors to be interested in stones with a size of 1 to 3 carats, in the best parameters of color (D) and purity (IF). The minimum amount that will make the investment profitable then oscillates around 10,000 euros. But you can also earn on less conventional stones. For example, the diamond embedded in our Rose ring, with a large weight of 6ct but K color and SI purity, also gained 60% in 10 years. In turn, investors with an even more rich portfolio may be tempted to buy colored diamonds, very expensive, but also with annual increases of 20 – 30% – advises Adela Brabcova, President of Diamonds International Corporation Polska.
–And let’s remember not to be deceived by the alleged opportunities. Beware of diamonds sold on the Internet, without a certificate, with an unknown certificate or in a damaged safe pack – seemingly saving, we can lose all the money invested. However, with basic caution, the investor can sleep peacefully to enjoy a fair profit at the time of sale. If at all, the investor decides to resell the diamond, because in practice it happens that the owners of diamonds are so attached to them that they keep them for many years, and then pass them on to the next generation.’’
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Phone: +48 780 061 704
E-mail: spoch@wp.pl
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