Investment offices get this question more and more often: does it pay off to invest in diamonds? Absolutely, if you have prior experience in the matter or if you seek the advice of a professional counselor. For those who have little or no knowledge whatsoever about the diamond market, it is advisable to go with the second option and allow yourself to be guided by a reliable team of experts. By doing so, you will enter a safe market with a reliable return-on-investment.
What are the advantages of investing in diamonds?
1. Rising diamond prices
Since the late '50s, the value of diamonds has increased by an average of 15 percent each year. Moreover, the diamond price remains completely independent from the financial markets. The diamond offer is stagnating, while the demand for diamonds (especially in Asia and the Middle East) continues to rise. It is generally expected that these regions will make up not any less than 40% of the total diamond demand by 2015.
2. Easily transportable
Diamond investors can easily transport a collection worth over two million euros in their pocket, even on a plane. If you choose to invest in gold however, you will need a heavy truck to transport the goods. It has been shown throughout history that diamonds prove to be a brilliant investment in times of unexpected, sudden disaster or crisis.
3. Diamonds for industrial applications
Due to their exceptional quality diamonds are even being used in many construction and industrial processes and modern high technology. Not any less than 80% of all diamonds worldwide have been put to use for industrial purposes.
4. Ethical Investment
Thanks to a sophisticated international certification system conflict diamonds have been resolutely banished from the international market. Besides, Antwerp is the global leader in the trade of pure diamonds, both in terms of origin as well as quality.
5. Limited impact of synthetic diamonds
Synthetic diamonds are readily available, but they only make up 0.01% of the total market. We can thus conclude that their impact on the demand for real diamonds is negligible. After all, who would want to buy his fiancée a synthetic engagement ring?
6. Stable market
It is highly unlikely that diamond supplies will increase in the nearby future. It has been a very long time since a new major diamond mine was last discovered. Besides, it would take at least 10 to 12 years to get such a potential new mine up and running.
If you are looking to invest in diamonds, it is advisable to seek the professional assistance of a diamond expert in order to guarantee a maximum return on your investment. BAUNAT has accumulated and transferred knowledge about the diamond industry over generations and our team of experts would be more than glad to provide you with all the necessary professional advice.