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Diamond as investment: is it comparable to famous paintings?

  • No two diamonds are the same.
  • There is a perfect investment diamond for everyone.
  • What is concentrated wealth?

Our world is full of extraordinary objects and it is hard to choose a favourite among them. Because our unique human nature – we are driven by our passions – we all have different preferences. Some people collect music that moves them, others surround themselves with objects of art. A special category is reserved for jewels and precious stones. Nothing in this world is comparable to the feeling you get when the light hits a diamond jewel and it sparkles in all its perfection.

BAUNAT DIAMONDS’ expertise is investment diamonds. We inform and advise private individuals and investors regarding which diamonds are most suitable for their specific investment portfolio. Diamonds are often compared to art, but is investing in diamonds comparable to investing in paintings?

 

No two diamonds are the same

Just as every famous painting is unique, every coloured diamond ever mined is one-of-a-kind as well. When two very similar-looking fancy coloured diamonds are compared, you will find that their specific characteristics are never identical. After all, diamonds are natural products. They are formed by nature and their characteristics are determined by different natural phenomena, which happen simultaneously or not, and influence the colour of the diamond. In this way, every diamond is unique. In the same way, no two paintings, of for example Picasso, are identical. Even if two works look similar, we will always be able to discern differences. This has as a result that both diamonds and paintings are a rare commodity, and something which is rare will have a correspondingly high value.

There is something for everyone

Fancy coloured diamonds exist in every possible colour of the colour spectrum. If you have a preference for a certain colour, chances of it being available are pretty high. Take pink diamonds, for example. Their popularity as investment diamonds increased considerably and they became a sought-after colour for investors. The demand for pink diamonds grew, resulting in soaring prices and value, up to this day. When we compare this to art, we see that there too, there are different preferences regarding artists. Each of us has a specific painter he or she prefers. The demand for a specific painter’s work, will determine the value of his paintings. But ultimately, the popularity of your preference will determine the value of your chosen paintings.

Concentrated wealth

A painting’s worth can reach millions of euros, similar to a diamond the size of a 1 eurocent coin. Both the painting and the diamond, have a concentrated wealth per gram. However, not all paintings and not all diamonds are equal. There is the risk that, if you don’t let an expert assist you, you will purchase an item of low value. If you make the well-informed decision to invest in diamonds, this form of concentrated wealth could be an excellent addition to your investment portfolio.

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