Is investing in diamond something for me?

  • Do you have a diversified investment portfolio?
  • Are you willing to wait for the realization of added value?
  • Are you willing to follow up the developments in the diamond market?

For many, investing in diamonds is a relatively new concept. Because of the disappointing results of other investment products, such as savings accounts, there is a new kind of investors looking for alternatives, which leads to an increase of the interest for diamonds.

In the 80’s, colourless diamonds were already sold as an investment, with the promise that gems would increase in value. The truth is that diamonds can be a very good investment, when it is the right kind of diamond. Just as with art you can realize a good value, if you buy and sell at the right time.

It is important to know that only diamonds with specific colours and characteristics are eligible. Red diamonds for example are highly sought after, followed by blue and pink diamonds. Other colours, such as purple, orange and green can be interesting for specific diamond collectors.

The value of blue diamonds for example has increased 600% over the last 17 years. The prices of blue, red and pink diamonds continue to grow because the demand has been steadily increasing and the supply is falling. Aren’t you convinced yet? Ask yourself three questions.

Do you have a diversified investment portfolio?

Usually, people don’t consider diamonds for their registered and organized investment portfolio. Their portfolio will always be a reflection of the things they understand and know something about. Alternative investments can come in a second phase. Investors invest in diamonds with the intent to sell later at a high efficiency.

Are you willing to wait for the realization of added value?

You always invest in diamonds for the long term. The value of diamond increases after a certain time in any case. Since such investment diamonds are already quite pricy, their value doesn’t increase at first sight when you view the results year by year. However, if you look over a period of five years (or preferable 20 years), you will be able to determine a significant increase in value. In short, if you want to realize a short-term investment value, then investing in diamonds isn’t the best option. However, if you can wait five years or longer, the ROI will be remarkable. The best results can be reached after 20 years, but this depends on the size and the quality of the diamond.

Are you willing to follow up the developments in the diamond market?

The difference between diamonds and other investment products, such as bonds or stocks, is that information about diamond prices is less accessible than pricing information about other investment products. Who invests in diamond can’t count on daily or monthly price charts. If you want to invest in diamonds, you should be willing to spend enough time to get to know the diamond market and let a diamond expert guide you. BAUNAT DIAMONDS is the worldwide specialist to assist you when investing in diamonds.

If you are interested, please read more about investing in diamonds:

Author: San Meuleman

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