When is a diamond investment right for me?

  • How diversified is my portfolio?
  • How long am I willing to wait for profits?
  • What level of effort am I willing to put into my investment?

Although diamond investments are a smart idea for any investment profile, they might not be the ideal investment for you as an individual. What should I take into account when considering a diamond investment? When are diamonds the right step for me to take?

How diversified is my portfolio?

Diamonds fall into the category of alternative investments. That means that they perfectly serve as a valuable addition to your portfolio, but they should not be the lion’s share. Every portfolio should be smartly diversified with investments that suit you and your investment needs. Although diamonds are available for smaller budgets as well, it is wise to incorporate smaller investments which are very easily liquidated when necessary. That makes diamonds the perfect addition to many a portfolio, but by no means the very first investment to add.

Make sure your portfolio accounts for sufficient traditional investments with predictable returns or known risks fitting your profile. When two thirds of your portfolio is made up of traditional forms, feel free to add one third of alternative investments.

How long am I willing to wait for profits?

A diamond investment can be highly lucrative when the right buyer is found. However, finding the right buyer is not always an easy feat and might result in quite a long search. Make sure you are willing to hold off on selling your diamond until you have found someone who fully appreciates the value and is willing to pay the right price. Because of this, you should never invest money in diamonds when the chance exists that you might urgently need it on the short term. Only invest money you can do without, no matter which investment you end up choosing.

Although diamonds steadily increase in value over years, you will want to wait for the moment the price hits your target and you are eligible to receive the amount you were looking for.

What level of effort am I willing to put into my investment?

As with many lucrative investments, a little time and effort goes a long way with your diamond investment. You should be willing to do some research into both diamond investment firms and the value of diamonds before committing to a sale. Know what you are investing in and take care to trust your investment to a reliable retailer. Research where you get the best value for money, for instance by buying diamonds online. Moreover, knowing exactly when to sell is far easier when you have been keeping an eye on the diamond market through channels such as Rapaport. Lastly, you should try to keep in touch with your diamond investment expert for guidance.

Rapaport

Where can I buy a diamond investment with proper guidance? How can I be absolutely sure that diamond is the right investment for me? Contact the diamond investment experts at BAUNAT DIAMONDS for personalised advice.

Author: Inge De Wee
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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