Smart in Every Way

Which are the most important questions to ask about a diamond investment?

Which are the most important questions to ask about a diamond investment?

  • When are diamonds the perfect addition to my portfolio?
  • Where do my investment diamonds come from?
  • How can I liquidate them with higher returns?

With many young and novice investors the crisis of 2008 still resonates when it comes to asset allocation. They have little confidence in the stock market and keep their savings mostly stored away in savings accounts. Although safe, these accounts yield virtually no returns and cause lower savings in the long run. Investments in commodities such as diamonds can be exactly the alternative investment you are looking for. What do I need to know?

When are diamonds the perfect addition to my portfolio?

Adding commodities to your portfolio in the form of a diamond investment adds a stable investment with higher returns than many other forms. Moreover, the vast number of different types of diamonds allows you to choose the exact gem fitting your portfolio. How can I choose a very large diamond investment to give my portfolio a big capital injection? Try the rarer types of diamonds, such as colourless diamonds of the highest quality and high caratage or rare coloured diamonds. What if I do not have much to spend? Then smaller, less rare colourless diamonds of investment quality are the perfect choice.

No matter how you decide to allocate your assets or manage your portfolio, you will always be able to find a diamond investment perfect for your investment goals. Make sure you are aware of how diamonds are graded and you will find the perfect gem.

Where do my investment diamonds come from?

This question is a relevant one on two levels: ethics and price. Firstly, your investment diamond should always carry two certifications. The first will guarantee the value of your diamond by registering its grading at top facilities such as GIA, IGI or HRD. The second certification is the Kimberley-certificate, guaranteeing that your diamond is ethically clean to avoid investing in a conflict diamond. This will almost always be the case because of the Kimberley process, but be sure to check the certification none the less. Secondly, you need to know how close to the source you are buying.

If your investment diamond has passed countless middlemen, retailers, and investment firms they will be more expensive than they are actually worth to cover the overhead costs. Make sure to buy your diamond from as close to the source as possible.

How can I liquidate them with higher returns?

Investing in the perfect physical commodity is one thing but liquidating it to enjoy the profits is quite another. Take care to research all of your options to resell your diamond for the most optimal returns. Asking for assistance from diamond experts takes you a long way as well, so make sure you surround yourself with the right people. Lastly, being patient is key. Never try to sell physical commodities for quick money. You will have a hard time finding the right buyer if you do and will end up selling it below its market value. Wait for the right buyer to come along and pay the proper price.

Where can I find the perfect diamond for my portfolio? How can I be sure of its value? Contact the diamond investment experts at BAUNAT DIAMONDS for the perfect safe addition to your portfolio.

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.

START TO INVEST See our selection of loose diamonds

Related

Most popular