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Buying Diamonds as an investment

An object of fascination, diamonds have also for several years been a safe haven for those who wish to circumvent the ever more restrictive risks of stock market investments and the less advantageous rates of bank investments.

In a context where demand for diamonds greatly exceeds supply, and this trend is increasing, we can understand the rush of investors towards this precious stone, which is seen today as a safe haven. And for good reason, projections are based on ever-increasing demand with a note of depleting resources by 2030. Therefore, if you decide to make an investment diamond purchase , you have a good chance of doing so now, and accruing interesting capital gains on resale later.

Like investments in other assets, the mechanism is simple: you buy your stones to resell them, following the evolution of prices. Obviously, the quality of the diamonds in question affects the profitability of the investment. The more they are rated the more they are negotiated at favorable rates. And speaking of notation, it takes into account certain characteristics grouped under the 4C factors: CaratClarity (purity)Cut (cut) and Color (color).

A PROFITABLE AND HEALTHY INVESTMENT

The diamond compared to other investments and currencies whose prices fall sharply, offers the guarantee of a value which evolves in a more stable way – approximately 6% per year on average – since 2011. This precious material is also not subject to constantly changing political contexts and other legislation. Unalterable and inexpensive to maintain, diamonds also have the advantage of being eternal and rare. In this regard, it is estimated that the world’s resources should be exhausted by 2030. All this gives the carbon stone a very special status. It is in addition to an international currency of exchange in its own right, just like gold and silver.

AN INDEPENDENT, SELF-REGULATING MARKET

The stability of this investment depends on how the market is organized. This is made possible by the independence enjoyed by the sector, which greatly limits the risk of collapse or bubble.

The operation of the market follows the tap strategy thought out by Cecil Rhodes. This supposes a creation of demand by controlling the flow of stones. When diamond production is too high, the mines where they are kept are closed. Conversely, when there is not enough demand, diamonds are taken out of their reserve to stimulate the market. It is on this mechanism that the market relies to guarantee price stability or, if necessary, to maintain them at a high level.

Need Help Shopping for a diamond?

Read through this quick step-by-step guide to help you make up your mind. If you still have questions, we’re there to help you!

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