An invincible investment

Do you want to distribute funds to several investment instruments and think about long-term and constantly growing alternatives? In addition to an action, fund, real estate, antiques, or precious metal, offer a good investment opportunity so investin diamonds. Their biggest advantage is, among other things, especially the long-term and stable rising price. So what about the invincible between the precious stones?

The diamond has always been considered a mound among precious stones, and this title remains to this day. This is evidenced by his name in etin adamas, which means invincible. The demand for diamonds is constantly rising, so it can be expected that this title will remain in the future.

Diamonds are used in many fields and, thanks to their physical properties, they have a wide range of uses, from industrial use to percask industries. But today we will talk mainly about investment diamonds. Diamonds as a type of investment provide the managers with a number of benefits, which are the reason for their inclusion in the developed portfolio. One of the most important benefits is the rising price, which has grown steadily in recent years. The world’s largest producer, the South African company De Beers, raised the price of the nebrouench diamond several times this year (in the first half of the year alone it was 14%, in August it was another 5%).

It is the bottom of the ever-growing demand, which has recently been helped by the liberalization of such a large market as there is, but the traditional customers such as the USA or Japan are not lagging behind. On the other hand, it affects the price of dream supply, which is caused by the constantly changing sales reserves of rough diamonds, but so by social conflicts in the mines of the largest producer countries, such as Botswana or Jin Africa. This even leads to speculation in the rough stone market, where diamonds are sold and by 15-20% the price, not the official price of De Beers. It then increases the price to eliminate this artificially created dispersion.

Most producers of raw diamond
(in millions of cards and US dollars in 2002
ZemMassValueAccording to the market
Botswana28,42 20027,8
Mask221 50018,9
Dem. rep. Kongo176007,6
Stedoafrick Republic0,61001,3

Source: Rapaport Diamond Report

Another indisputable advantage in other investment instruments, such as real estate, antiques, or precious metals, is their size and durability, and thus the transferability, or storage options. The great advantage of investment diamonds is the fact that they are an unregistered commodity. This means that even in a civil dispute, which means endangering the property, the legislative activity of the state is inviolable and at the same time endangered.

Which yes and which no

So when you decide to invest in diamonds, you should know that not all diamonds can be considered an investment. Only high-quality stones, weighing 0.5 – 1.5 cards, can be interestingly evaluated. We can expect the most interesting appreciation for these diamonds first, because their quantity is rapidly declining and price growth is thus most likely and not subject to economic, political or inflationary influences. Mench stove is on the market under jet enough and their prices are particularly stagnant.

diamond prices

Source: Diamond Trade Center

Investin diamonds must have an internationally recognized certificate (HRD, GIA, etc.), containing a description of the stone (color, cut quality, security, etc.). For security, the investment diamonds are sold in a sealed case (sealed in a foil) containing both microphones with a changed certificate. It is important to note that the day of the telling value is not the cards that the merchants fill in the stores themselves.

For processors and traders in raw diamonds, the certificate of origin is important, which must be based on the so-called Kimberley Declaration from 1 January this year for each diamond cut. This special certificate declares that the tribe does not come from any of the countries, especially in Africa, in which various resistance movements illegally sell raw diamonds and abuse the bird for financial terrorists and civil society. These blood diamonds currently make up about 5% of the world’s worldwide, which is about 400 million ron.

It is not possible to time it and use all the options (pre-emption, options, auctions, etc.), you can get a price advantage. The price at which a diamond can be sold is in thousands of crowns. But in order for this investment to pay off, it is necessary to buy a diamond worth around 100,000 K. Here, too, there is diversification in the city and it is good to keep in mind that it is better to buy speckled but high-quality diamonds without defects, not sentences with defects. . When assessing quality, it is necessary to take into account all the most important properties and not just the grinding or safety.

Where can investin diamonds come from?

Diamonds are traded on diamond exchanges. The largest and most famous are located in Antwerp, Belgium, where more than six percent of the world’s rough diamonds are traded, then in Tel Aviv or New York. For us, it is best to find out about the possibility of investing in banks, or specializovanch firmchwhere vm meeting qualified councilors and who have access to the worlds of diamond exchange. You can make sure that the stones are certified and you avoid a lot of resources. They can increase the price considerably, the fee for the sale of the goods on the stock exchange and an average of 4% of the price of the diamond. If someone is looking for diamonds abroad, they do not have to worry about high tariffs when importing. As with most precious metal or perk products, investment certificates with a certificate are not subject to duty.

Who are investin diamonds for?

Buying a diamond can be recommended to conservative investors, for whom this method of investment is a special preservation of the value of the investment, not a pursuit of reversible profits. The investment horizon, which should be at least 5 years, also corresponds to this. In the bnm portfolio, diamonds should then be represented by 5 and 10%. Throughout their history, diamonds have proven their ability to preserve their value and provide their owners with protection of their property in times of inflation or crisis, and therefore they have become a popular form of protection in times of uncertainty.

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