UPPER QUALITY DIAMONDS ARE REPRESENTING A LONG TERM SAFE INVESTMENT WHICH WILL BECOME MORE VALUABLE OVER THE YEARS.
Rare diamonds of exceptional quality are a safe investment but certainly not a commodity for speculation.
The term « investment diamond » does not explain a method that provides fast enrichment or loss of funds, which one would expect in the case of speculation on the financial market.
The diamond is not a speculative product but a natural resource which might increase in value on a long term basis according to offer and demand volumes.
Presently the price index for high quality diamonds weighing over one carat shows an increase of more than 60% for the last 24 months (around 40% since September 2010)
When the stability of the economy is in danger, when we are facing a turbulent economic climate, the investors want to protect their investments from devaluation: Right now we are all experiencing this very confusing situation.
Those who possess stocks, shares and bonds can loose all or a large portion of it.
The people who have taken precautions by buying real estate, gold or diamonds are in a safer position.
They also can take their diamonds easily to a different place and carry a part of their inheritance with them at all times.
The Important characteristics of investment diamonds as a safe investment
Two percent of the diamonds offered, because of their excellent quality, have a value that is insured and that keeps increasing in the long term. As much as 80% of the extracted diamonds (100 million carats = 20 tons) are useable in the industry and the other 20% (25 million carats = 5 tons ) are used for jewellery and investments. Only 5% of cut diamonds have a weight that is more than 1 carat.
- It is a secure investment since formed in millions of years, diamonds are inalterable.
- Their value is not linked to the value of money.
- An investment in diamonds does not bring in instant revenue but can add value to the amount of money that is invested.
- It is a long term investment which will become more valuable over the years.
Since 1900 the diamonds value has increased by 1,5 to 2 times of the inflation rate in longer periods.
On a short term basis the prices jumped by 30% to 40% for the high quality stones under the impulsion of the fast increasing demand of the emerged countries likely China, India, Russia and th Gulf. Demand for rare stones is surging as the number of multi-millionaires from commodity-rich emerging markets rises. There is no limit to the upward movement of diamond prices in the present environment. This trend has made diamond investment a viable option following the example of gold. Diamonds provide an opportunity to investors. Like gold diamonds are a commodity, a natural resource with limited supply. People want to own them and they are becoming a serious hedge against inflation.
Sergey VYBORNOV, President of the giant Russian company ALROSA (25% of the world supply), one of the three major Producer of rough diamonds in the world with DE BEERS and RIO TINTO ZINC, estimates that the world demand for rough diamond will reach 20 billion US dollars in 2020, while the offer will not exceed 9 billion US dollars by today’s rate.
As a consequence the value will climb and diamonds will become more and more expensive.
- Diamond is a discrete investment, because a small volume of great value is easily kept (1 carat = 0.20 gram). One gram of diamond can replace, in value, several kilograms of gold.
- Excellent stability in value in times of devaluation as a hedge against inflation, universally accepted.
- A lot of diamonds can be divided in several smaller lots and sold partly, without the decrease in value of the remaining lot.
- Investment diamonds do not require special management, they are generally placed in safes.
- Diamonds are forever beautiful, unique and eternal.
Which quality of diamonds to buy as investment diamonds?
Rare stones will in time increase the most in value.
We therefore advice to buy, in terms of secured value, diamonds of superior quality categories :
- Shape : Round ( brilliant )
- Weight : More than one carat
- Colour : D,E,F
- Clarity : Flawless (IF), VVS1,VVS2
- Symmetry : Excellent, Very Good, Good
- Proportions : Excellent, Very Good, Good
- Finish : Excellent, Very Good, Good
- Fluorescence : Nil or Faint ( most rare diamonds have no fluorescence )
How to buy investment diamonds?
Investment diamonds must be purchased in a sealed package, accompanied by an authenticity certificate established by the independent laboratories which are recognized world wide.
The certificates address the 8 criteria of quality, examined by one of the following official institutions :
- HRD Antwerp (Hoge Raad voor Diamant)
- GIA New York ( Gemmological Institute of America )
- IGI Antwerp (International Gemmological Institute ).
It is generally advised to carefully view the invoice to check the mentions and specifications of the stone and most important the number of the Authenticity Certificate.
Where to buy Investment diamonds?
The most appropriate places are the diamond companies in Antwerp which is the Diamond Capital of the World while they are able to supply the best diamonds straight from the cutting centers for the best possible prices. All added costs and commissions for wholesales, importers and jewellers are eliminated.
These Companies might resale or buy back your diamonds in the future.