Investing in investment diamonds or not?

The question about whether you should invest in investment diamonds or not, cannot be answered with a simple yes or no. Multiple factors, that are both personal and industry-related, play a crucial role. Investing in diamonds is nothing new, but this does not mean it is clear to everyone. 

The diamond industry

The global diamond industry can be difficult for investors. For a long time, the investment diamonds’ sector was known for its lack of transparency. As a result, investors were not able to easily analyze the risk factors and profitability. However, there is an abundance of opportunities for those who want to invest in investment diamonds. The most important thing is that you know what you are doing.

The capital

The idea to invest your money in investment diamonds is not for a starting investor. Especially if you do not have the necessary knowledge about the product you invest in. And although you do not have to be a millionaire to buy investment diamonds, some start-up capital is required. The main rule is simple: "the greater the investment, the higher the return." Do, however, keep in mind to diversify your investment portfolio. After all, the sector is primarily intended for those who have resources and would like to diversify from the more traditional investments in the market.

Certificates

Although investment diamonds are an interesting investment, you have to proceed in a well-thought-out and well-informed manner. There is no shortage of fraudsters. The certification of investment diamonds should be able to bring an end to that. Each polished diamond has a certificate to represent its identity based on the 4 C's. The most renowned certificates are GIA, HRD and IGI.

Saleability

Of course the saleability of your investment diamonds is at least as important as the added certificate. That is why it is best to choose for investment diamonds of high quality. Do not let yourself be tempted to buy the biggest diamond. The size is inferior to the quality. Clarity, colour, carat and cut, indicated by the earlier mentioned 4C’s, are critical to making the right choice.

Would you like to know more about our selection of loose certified investment diamonds or about resale options? Please contact the experts of BAUNAT DIAMONDS. 

Author: Inge de Wee

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