The precious white stone is known for its hardness, brilliance and incomparable beauty.
The moment is favourable to invest in the precious stone. But there are several important criteria to consider before investing in Diamonds.
Firstly, favourable price push to invest in diamonds. The peak of the market was reached in 2011. Prices had flared and reached their maximum, as is the case once or twice every ten years
. Then there was a lull, followed by the global economic slowdown. The price of the precious stone is determined by the production of the mines. It is based on the manufacturers and the state of stocks of crude or cut.
The characteristic of the market is that the price is regulated. There is a level below which the price does not go down. What makes it a tangible asset that counts alternative investments on the stock exchange
, as well as real estate and art. Macroeconomic conditions suggest that invest in diamonds
is clearly a good idea.
Invest in Diamonds and Precious Stone
Many sellers believe that a 1 carat stone is already an investment diamond, and offers intermediate qualities in general, as it allows for small sums. Stones of 1 carat (0.2 g), it is not so uncommon. On the other hand, stones of 5 carats and more in exceptional quality are really rare. Some are even unique.
Some companies give investors access to stones at least 15 to 20% less expensive than the Rapaport Price List
(wholesale price). The objective is to sell at a wholesale price a stone whose value is provided by its rarity. It allows to achieve added value and/or secure heritage. Diamond is a non-renewable natural resource. Specialist estimate to be depleted in a few decades, adding a certain element of long-term value and a serious asset to invest in Diamonds.
There is also a current craze for coloured diamonds due to their rarity. These have been breaking auction records in recent years. There are seven tones: blue, pink, purple, red, orange, green and yellow. Most of the exceptional stones come from an Australian mine, which will close in 2022. The one who invests in Diamonds, and in these particular coloured stones, will have something that will almost no longer exist in extraction.
Invest in Diamonds and Time horizon
The best time advised by the expert to hold a diamond: five to ten years. Either the period that starts after a peak, and arrives at the next. Ideally, we need to be able to keep a stone for twenty-five years in a perspective of heritage diversification. An all but speculative investment.
Despite their long-term investment qualities, holding diamonds is not yet perceived with the same appeal as owning real estate or art products. The demand for diamonds and especially the number of potential users (with the development of the major Asian, Russian, South American, etc. markets) have nevertheless increased in the global market for decades, without there being a speculative bubble on the physical diamond. Its rarity also gives it the legitimacy of a hoarding asset, as well as its intrinsic value.
Another good reason to invest in Diamonds is its value toward inflation. Indeed the precious stone protects the investor against inflation because it does not devalue. Here too there is the notion of scarcity.
What about Synthetic diamonds now? They don't compete in the same category as its natural
rival. The synthetic diamond is actually a real diamond that has experienced a process of acceleration, where a natural diamond takes 1 billion and a half years to create.
The price difference between natural and synthetic diamonds is 20% to 30% of the price on large volumes of trade. But finally ends up at retail prices only slightly lower than that of natural diamonds (from 0 to 20%). It is estimated that the synthetic diamond cut in gem quality, represents at the moment at least 3% to 7% of the market. His presence is in any case constantly increasing. Analysts talk about 10 to 15% of the market by 2021.
One thing to keep in mind before starting to invest in Diamonds. Extremely strict rules have been put in place so that the identification of synthetic diamonds is perfectly noticeable within the distribution chain and by the end customer.
Invest in Diamonds and legal Certification
The international reference company is the GIA, Gemological Institute of America, based in California, US. The Institute founded in 1931 to protect the clients that invest in Diamonds. A GIA diamond will cost more but its strict analysis will refer to the international.
It will not be the case for other laboratories. Other current certifications in Europe are HRD, EGC, IGI. Note that there are excellent and very advanced laboratories in Switzerland, such as Gübelin Gem Lab, SSEF, GGTL, among others.