What investment tips can help me buy the correct diamond?

 

How do I start investing in diamonds?

What should I concentrate to when choosing a diamond?

How do I progress to buy diamonds?

You already know that investing in diamonds is a valuable addition to your investment portfolio. They represent high returns, are virtually crisis proof and even have great emotional value. But how do I go about adding the right diamond to my investment portfolio? What should you pay attention to during the purchase process?

How do I start investing in diamonds?

1. How can I get familiar with the basics?

Start at the beginning and with white diamonds, this is with the 4Cs. If you have seen a colored diamond, then be sure to ask specifically about this as well. This is because colorless and colored diamonds are very different types of diamonds. With both types you will have to pay attention to very different things and therefore you will also buy them for different purposes.

2. What budget?

Please note that an investment in diamonds will be part of your total investment portfolio. Decide on the relationship that your diamond can represent in relation to the rest and stick to this.

3. How can I diversify?

Don't put all your eggs in one basket. If you are planning an investment of € 20,000, consider spreading your money between 2 and 4 diamonds. Do not invest in several different diamonds of the same type. Looking for a pink diamond? Be sure to buy a diamond in another color as well. Also, you can alternate the shape of the diamond or the intensity of the color.

What should I concentrate to when choosing a diamond?

4. What price do I choose?

Diamonds are not stocks. The price is not set by thousands of buyers and sellers who place offers online on a platform. What is possible is to compare the different prices of diamonds online until you find the most suitable one.

5. How can I buy a rare diamond?

There is little point in investing in something everyone already has. Selling will be difficult if the supply in the market is large and competes with many other suppliers. However, a rare colored diamond will allow you to play in another league. These diamonds are rarer, more sought after, and as a result, also simpler to sell in the right market.

How do I progress to buy diamonds?

6. Why buy a certified diamond?

This is more or less the basic rule. It is best if you buy a single diamond with a GIA certificate. This is the best known and strictest label. When it comes time to sell your diamond, your buyer will also want to see your GIA certificate.

7. Why buy loose diamonds?

You can also buy diamonds in a jewel. This can affect the price both positively and negatively. On the one hand, the craftsmanship of the jewelry will increase the value, while, on the other hand, individual tastes can play against you when it comes to selling. So be sure to go for a timeless gem for the easiest resale possible.

8. How do I find information?

Ask the right questions. We all live in an age of "sharing." You will definitely be able to find experienced diamond investors who can give you additional advice.

There are several reasons why buying a diamond is an excellent long-term investment:

Diamond is a rare and finite good

Diamond is pure crystallized carbon, generated at remarkable depths in the earth's crust. 400 tons of earth and rock need to be mined in order to obtain a one carat gem quality diamond. Being a scarce and finite raw material, its prices will rise inexorably in the long term.

Controlled production

There are currently 4 large multinationals that control almost all of the world's diamond production.

Some of these companies are refocusing their strategy to produce only those that consumers demand, in addition to having reduced the number of customers to whom they supply diamonds.

As supply declines, crude prices tend to rise, and it seems that medium-term expectations continue to be of a gradual rise in the price of crude.

Increasing demand

80% of current global demand comes from the United States, Japan and Europe.

The rapid development of countries like China, India or Russia is increasing the number of people with purchasing power, potential customers of products such as diamonds.

Everything indicates that during the next few years the demand for diamonds will grow above the supply, which should drive up prices.

Historical evolution of prices

During the last 20 years, the evolution of diamond prices has increased an average of 3% per year.

Some magazines, which produces the reference price lists for diamonds, carried out a study showing how the prices of some qualities of diamonds have multiplied by 2 since the last 15 years.

Investment without expenses

Unlike other investments (such as real estate), the diamond is a good that does not spoil, does not break, can be easily transported and has no maintenance costs of any kind.

In addition, thanks to the globalization of economies and the rise of the Internet, every day it is easier and faster to buy and sell diamonds between individuals on a daily basis through portals such as eBay, ...

Now you are ready!

This is the end of our diamond training course, we hope you now have a clearer notion about diamonds and their qualities.

Craig Leonard offers certified diamonds and exceptional service. If you have decided to take the big step, we will help you choose the perfect diamond and setting to become an engagement ring as unique as your partner.