Smart in Every Way

Investing in diamonds is not only for ‘the rich and famous’

  • Increasing demand for investment diamonds
  • Even if you are not a millionaire, you can invest in diamonds
  • In the past years, the investment market has become much more transparent.

For many years, diamonds have been the symbol of eternal love, but more and more they attract investors too. this is because these raw materials or commodities have a potentially high profitability. If you are looking for a relatively stable investment, then investing in diamonds is a very good alternative. Is it a playground reserved for only the ‘rich and famous? Not at all! Everybody can invest in diamonds. You as well!

Over the past years, the buzz around investing in diamonds has been fed by the spectacular amounts offered at auctions. The collections going under the hammer at Christie’s and Sotheby’s have an enormous influence on diamond prices. However, this does not mean that you won’t be able to buy loose diamonds with a smaller budget.

Due to the increasing demand for investment diamonds, companies are developing investment funds and listed diamond-focussed funds. Of course, when investing in diamonds, you need to know what you are doing. As a matter of fact, your knowledge is of greater importance than your budget. Of course, you have to take your minimum budget into account. If you have approximately 75 000 euros in the bank, you can definitely join the diamond market.

Buying and selling diamonds is not only dependable on the principals of supply and demand. You cannot simply invest in diamonds and expect you will resell with profit. Each time a diamond transferred from one buyer to another, the price will be reconsidered. You have to take the price transparency, quality assurance, transaction costs and saleability into consideration when investing in diamonds.

In recent years, the market has become much more transparent in this respect. Investment funds are getting more popular and the demand for diamonds is constantly increasing. And thus, if you have a nice amount of money set aside, it is still very interesting to invest in diamonds, even if you are not a millionaire. But only when you continuously add to your knowledge regarding diamonds. After all, every diamond is unique, while a gram of gold will always be a gram of gold. Thus, learn the language of the diamond dealer and get comfortable with the 4 C’s.

Are you interested in investing in diamonds? Take a look at our 4 investment options or contact BAUNAT DIAMONDS for additional advice.

Author: Inge De Wee
Source: BAUNAT

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