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Which steps do I take to sell my loose diamonds in the current diamond market?

Which steps do I take to sell my loose diamonds in the current diamond market?

  • What do I need before I start looking for a buyer?
  • Which types of buyer should I consider selling to?
  • How can I be sure my buyer is trustworthy?

Being an active investor might end up being very lucrative, it comes with challenges of its own and many misconceptions about selling diamonds to avoid. Not only do you need to pick the right investments for a diverse portfolio and follow the market as they grow, you also need to know when and how to liquidate them. Which steps do I take to be sure to get the right returns?

 

What misconceptions exist about investment diamonds?

In the late 1970’s, fraudulent diamond retailers started contacting investors over the phone whom had recently sold bonds or stocks. They sent sealed packages to interested parties containing loose investment diamonds and their certificates. However, those certificates only remained valid as long as the packaging was sealed. It quickly became apparent why. After further inspection, the diamonds turned out to be gravely below the stipulated value at best, worthless at worst. These types of fraudulent practices tarnished the name of diamond investments everywhere and caused many to think diamonds have no intrinsic value. 

In addition to luring investors in with false promises and misplaced trust, one company’s practices could have been quite damaging to the entire diamond industry. De Beers Diamonds Investment, Ltd. turned out to not have any ties to the diamond giant everyone knows but did abuse their name at a time when it was almost synonymous to the diamond industry.

How are things in reality?

Misconceptions such as the aforementioned have long since been debunked. Throughout history, diamonds have always been highly valued. The intrinsic value has thusly been proven time and again, as long as they meet the right criteria. The 4 C’s are very meaningful and easily evaluated throughout the global market, which makes their price easily comparable to the market prices. Moreover, those qualitative features make selling loose diamonds far easier than critics claim. Not only is the current system of certification nigh impossible to counterfeit, they are based on a worldwide consensus about quality requirements.

That consensus subjects the quality characteristics of the different types of diamonds to different types of price evolutions, creating adequate transparency for those ready to sell their loose diamonds. 

How can I buy an easily liquidated diamond?

To be able to trust you will end up choosing the perfect diamond for your portfolio, it is advised to seek council with reliable diamond experts. As with many other investments, to buy and to sell loose diamonds is best done according to the expertise of initiates in the business. They can tell you what the optimal quality requirements are for an easily liquidated investment diamond and which type of diamond best suits your portfolio. Moreover, they offer advice about investing in rarer diamonds. It might be easier to sell loose diamonds that are more common, but rare diamonds do generate bigger returns.

Which quality diamond should I add to my portfolio? Where can I sell these loose diamonds when I am ready to collect? Contact the diamond experts at BAUNAT DIAMONDS for reliable guidance.

Author: Inge de Wee
Source: BAUNAT

This article is not a recommendation by BAUNAT DIAMONDS or the writer to invest in diamonds. BAUNAT DIAMONDS makes no representations or warranties as to the accuracy or timeliness of the information contained herein. Investing in diamonds is not without risk. All risks should be considered by the investor prior to investing.

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