Diamonds investment are highly controversial, so this article is for informational purposes only. Investing in diamonds should be attributed to venture capital investments because the cost of diamonds depends not only on the global market situation (with the crisis, luxury assets fall in price), but also on the asset itself: purity, cut quality, type and weight of the diamond. Therefore, when they say that the diamond investment market has fallen, conventionally, by 10%, this is not true, since this is tantamount to the “average temperature in the hospital.”
You can buy yellow diamonds on the diamond exchanges in Hong Kong, Mumbai, Antwerp, but to get on the exchange, an investor must find an intermediary, and this is 1-3% of the commission on the Diamonds investment amount. It can take several weeks to sell a diamond. The main condition of the deal is that the stone has a GIA certificate (US laboratory). It is not necessary to bring the diamond to Russia itself (customs clearance is an extra headache), in Antwerp, for example, there are companies that cost 100-300 dollars. The USA will offer storage service per year.
The price of diamonds depends on the saturation and purity of the color, the presence of fluorescence, etc. For example, a stone weighing more than 5 carats in the Fancy Intense Yellow category with a clarity from IF to VVS2 in 2005 was sold for 7-7.5 thousand dollars. USA, in 2016 – 30-35 thousand dollars. USA. Diamonds investment in colorless diamonds would bring only 70-80% of profit in 10 years, in yellow diamonds – 250-300%. Due to the rarity of the asset, the forecast for growth dynamics remains the same – about 8-10% per year.
Investing in diamonds is a long-term investment that requires deep knowledge. The high entry threshold, large margin, the complexity of the transaction – all this makes the purchase of Diamonds investment purposes inappropriate. However, there are still admirers of diamonds, and therefore we could not ignore this topic. The topic has already been partially touched upon here.
Diamonds investment : investing wisely
Over the past 10 years, yellow cut diamonds have risen in price by almost 300%. Their investment value is rare. Colorless diamonds are much more common, colored diamonds are stones with an admixture of nitrogen, which got into the diamond thousands of years ago at the time of the formation of the stone. Moreover, it was yellow diamonds with various kinds of iridescent shades that received value. There are also blue, green, pink, red diamonds, but they are so rare that the cost is hundreds of thousands of dollars. US per carat is only available to collectors and connoisseurs.
The nuances of Diamonds investment:
- if a yellow diamond has a minor hue, the price of the stone drops by half. In other words, the yellow color should be native, solid, while under the guise of a yellow stone, the seller can sell an ordinary one with a brown tint. The problem is fixed by certification. True, the investor must know what the original certificate looks like in order not to get a fake;
- the color of the diamond must be natural. For example, using pressure and temperature, the natural color of a stone can be changed (HPHT technology);
- a pure stone without fluorescence (overflowing colors under a bright light) costs 20-30% more.