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Buying and selling diamonds: what support can BAUNAT offer you?

Are you interested in buying investment diamonds in order to diversify your portfolio? Perhaps you already invested in these a number of years ago and you are wondering how much your gemstones are worth today? Would you like to sell them again? In any case, you will undoubtedly have a number of questions. Such as: how can you buy diamonds at the best possible price? Or: what’s the best way of selling them to a reliable party? The answer is simple: you can rely on BAUNAT DIAMONDS’ support. How can the specialist support you, from the initial purchase to a possible later sale? We discuss matters with Sander Michiels, Senior Relationship and Product Development Manager.

  • You can ask practical and logistical questions via the chat box on our website, or via WeChat, when choosing investment diamonds.
  • You can talk to specialists in the showroom, either by telephone or via email, for more complex matters like investment advice.
  • An incredibly well thought out purchase: always looking for the best possible price for the desired quality, or the best quality for the requested price.
  • The entire purchase process can be done online: from choosing the investment diamond to the payment, possibly even within one single App: WeChat.
  • You will receive support after your purchase with newsletters and information on request about, for example, the current price of your purchased diamonds.
  • The organisation of a smooth resale with another price analysis and support during your search for a reliable buyer.

Quick answers to practical questions during the selection process

If you have already been following our blog posts for some time, we won’t need to explain why buying diamonds in 2018 is such a good idea. Once you have made that initial decision, you can get started via our four investment options. You can find our complete range of top quality, certified diamonds in our extensive web shop.

‘You can instantly ask any practical or logistical questions via the chat box on every page”, Sander states. ‘The chat box is ideal for obtaining advice about a specific investment diamond and its price, to make an appointment for collecting the diamonds, or for them to be delivered to your home, or to come and see them in the showroom. In China we also communicate via WeChat for this purpose.’

More detailed guidance via other channels

BAUNAT DIAMONDS can personally answer more complex questions in the showroom, by telephone or via email, ‘for example when someone wants more detailed advice about which diamonds he is best off buying. We will start with entering into detailed communication with the potential customer, in order to find out what he is already investing in, what his profile is. We will advise him to invest a third of his assets in investment diamonds, spread out and will subsequently come up with a proposal. We may recommend someone invests in fancy diamonds if they have a great deal of capital to invest. These are expensive, but popular too and will therefore result in good returns. For those interested in steady investments, we would recommend investing in diamonds which will enjoy lesser returns, but which also require less financial effort.’

Once a choice has been made: an incredibly well thought out purchase

Have you made your first decision as to how much you want to invest, or what you want to invest in? Then the BAUNAT DIAMONDS team is ready to take action again. Sander Michiels: ‘If the customer asks for diamonds of a certain quality, we’ll look for the best possible price which those gemstones can be bought for at that moment. This can differ significantly, as one stone will be much easier to mine and cut than another. Is the customer interested in optimally investing a fixed amount, without a preference for a specific quality? In that case we will go looking for the best diamonds we can find with the available budget. The quality selection may seem random, but this will be the best way of spending the available budget at that exact moment in time.’

‘It’s interesting that we can still enlist the online help of a global BAUNAT DIAMONDS network of renowned diamond manufacturers. This allows us to map the prices per quality out ourselves. We also do this for diamonds with fancy colours and shapes, but will base our decisions on, for example, auction prices. At the same time we will also constantly take historic price evolutions per quality into account. After all, a price may seem good at first sight, but not necessarily when you take its history into account.’

The price we eventually use will therefore always be competitive, also as a result of our smart buy approach and our limited profit margin.

Buying diamonds spread over time, at a good quality

‘We always advise our customers to spread a larger investment in one quality over time,’ Sander Michiels says. ‘We will continue to purchase for as long as the price for that particular quality remains optimal. We will suspend the buying process as soon as it becomes less optimal. We are very strict where this is concerned. After all, even though the diamond price can increase in the long term, it can certainly also fluctuate in the short term. The price difference can be quite significant with certain types. We refer to this purchase strategy as cherry picking: we pick the desired investment diamonds at the best price, after which we allow the supply to grow again without opting for any ‘sour’ fruits. Once we have found the right gemstones at the right price again, we’ll simply start buying again, in consultation with the customer.’

At BAUNAT DIAMONDS you can always enjoy a guaranteed minimum quality. ‘We always minimally go for the colour G – which is already a very good white –, a purity of VS1 or higher – the stones are therefore already very pure - and a very good cut quality. We also only ever opt for 100% natural diamonds, certified by the three top GIA, IGI and HRD laboratories. We don’t think diamonds which have an insufficient score where these points are concerned are suitable for investment. At the same time we regard our self-chosen quality requirements as minimums, not maximums: if we can obtain something better for the cost price the customer and us were aiming for, then we will naturally opt for better.’

The BAUNAT DIAMONDS team would never propose something undesirable. ‘We screen each and every diamond thoroughly ourselves too, irrespective of the certificate it came with. Especially where its appearance is concerned: does the light shine through optimally, are there any visible flaws, is it visually attractive too? Either we inform the customer of any possible impurities or we don’t present the diamond. This work is crucial: the customer is relying on us, as he is making his purchase remotely.’

The entire purchasing process can be completed online, if so required

Unless you would prefer to visit a showroom and place your order there, or organise things via telephone, all steps associated with your purchase can be completed online. From your choice via the web shop, placing an order or requesting a personal quotation if you can’t find what you’re looking for, to our people answering any possible questions via email, completing the sale and paying for the purchased goods.

Sander Michiels: ‘It goes without saying this is possible in any country, via our web shop and email. One additional advantage of WeChat is that we can go through the entire purchasing process within one app. It will allow you to visit our web shop, place your order, receive the email with our quotation, conduct further discussions and make your payment.’ The Chinese app has progressed much further than the Western version, particularly where that last aspect is concerned.

In any event, any order in any country can be paid for via the most common electronic payment methods. ‘We offer the five most common options for each market, via our new payment service provider. You will be offered these options dynamically if you order via our website.’

Support after your purchase too

You will be able to continue relying on BAUNAT DIAMONDS’ support once your purchase has been completed. ‘We send out a newsletter to new investors, with more general information about buying and selling diamonds. For example about which gemstones and quality are particularly interesting for investments at that precise moment, as the market typically experiences a price dip of 18 to 24 months.’

One year following your purchase you will be able to periodically receive information about the current price for your quality of diamonds, about optimal resale moments ... ‘It’s important that we provide you with information upon request. One customer may have invested in diamonds with the intention of a possible resale after five or twenty years, whilst others may be investing for future generations and will therefore not be interested in a resale themselves.’

Organising a smooth resale

Let’s assume you eventually want to resell the investment diamonds. This will undoubtedly leave you with a number of questions. Possibly about the ideal resale moment, which BAUNAT DIAMONDS will be able to assist you with upon request. ‘But it’s important to realise,’ Sander emphasises, ‘that we can’t guarantee a return. Both ourselves and the American consultancy Bain & Company, which analyses the diamond sector on an annual basis, see plenty of opportunities for a further price increase. The product is becoming scarcer, demand is increasing. There is currently a huge demand for coloured diamonds. But this preference can change. And we have no control over this. The ideal investment term is always going to be longer term. Five years or more and the longer, the better.

BAUNAT DIAMONDS can once again provide effective support at the time when the customer is ready to resell. ‘First with advice about the best price the investor will be able to get for his investment diamonds at that moment in time. We look at our own (historic) price analyses per quality for this information. After which we start looking for an interested buyer. Or this may even be us, if we feel we are able to use the stones in our jewellery. We will subsequently come up with a competitive proposal. Or we will look for an interested company in our network. This allows us to give a private seller access to a b2b environment, which he normally wouldn’t be able to benefit from.’

As a seller, you can certainly rest easy: ‘We will only present you with potential buyers with whom we have already developed very good trade relationships. In other words, parties we have built up extensive experience with and who we know we can trust. So we have already taken responsibility for the first risk. This trust also remains an important asset in the diamond world: no transaction can go wrong, as this will instantly lead to a damaged reputation, especially in our relatively small sector.’

Planning on buying or selling investment diamonds?

Discover our four investment options, browse through our collections, talk to one of our experts or make an appointment to visit our showroom. For an optimal purchase and sale, fully supported by BAUNAT DIAMONDS.

Author: Tom Dejonghe
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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