Is investing in diamonds a new phenomenon?

  • Diamonds are forever.
  • A wearable and safe investment.
  • The emotional value of a diamond.
  • But what is the best investment then?

The majority of luxury items that we purchase shows wear and tear over time or is of a temporary nature. Jewels and diamonds in particular, however, ‘are forever’ and have a more inherent value than other raw materials. Because of their exceptional durability, diamonds are eminently suitable for investors.

A wearable and safe investment.

For the last thirty years, investing in raw materials or in diamonds has grown extensively in popularity. After the golden sixties and during the oil crisis, many investors looked for a safer and more profitable way of investing their money. Investing in diamonds is here a preferred option. Even though the banks offered sufficient interest, not everyone was prepared to trust them. Investment diamonds were a safe alternative. Diamonds lend themselves to keeping part of your acquired wealth with you at all times.

Of course, diamonds do not only symbolise wealth and prosperity. They are also a token of your commitment to your partner or family. In the past, diamonds served as an emotional investment: a diamond ring to celebrate a wedding anniversary, a diamond bracelet for a new-born child…This is why diamonds were often passed on as family heirlooms.

But what is the best investment then?

Naturally, you should never start to invest in diamonds prior information. If you wish to make profit at a later stage, you should not only consider the purchase price of your investment diamonds, but also a potential selling price. Extremely rare diamonds or diamonds with exceptional characteristics, for example, are harder to resell, compared to less uncommon, but qualitative diamonds. To guarantee profit during resale, the BAUNAT DIAMONDS experts recommend several characteristics (the 4 C’s):

It is important to always purchase 100% natural diamonds instead of diamonds that have been artificially enhanced. Furthermore, the carat weight of a good investment diamond lies between 1 and 5 carats. Investing in a diamond with a higher carat weight will at length lead to a more difficult resale. The general rule regarding the clarity of the diamond is ‘the purer, the better’. Opt for a diamond with a clarity grade of VS2 to LC (loupe clean). Lastly, if you wish to invest in white diamonds, the colours D, E, F and G are recommended.

Are you interested in investment diamonds? Contact our experts today to discuss your investment plans.

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Author: Daan Deruyter

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