Is investing in diamonds a good way to make money?

Posted on Oct 3 2022 11:58 AM

"On the documented authenticity and quality of the stone, on the legality of the transaction, on the dynamics of price changes for this category of stones"

unnamed-3

In terms of units of weight, diamonds hold more cash than any other asset or commodity in existence. In addition, they are easy to own and move. Try, for example, moving the proceeds from the sale of your property from one country to another. Not only will it be just hard - a few kilograms of money will not fit in a wallet or handbag. This will still require significant efforts in terms of security, compliance with various tax regimes and customs formalities. And if you want to do it as confidentially as possible, then there is simply no alternative to a diamond. Many people are concerned about the question    “Is diamond a good investment?”.   We will try to answer in this article.

 

To what extent is this relevant for savings in the short and long term?

Both when buying and selling diamonds, dealers and jewelers withhold their commissions in one form or another. It turns out that when we buy a diamond, we pay the dealer, and when we sell a diamond, we pay the dealer again. Unlike currency exchange operations at an exchange office, the amount of the dealer's commission is not transparent and known to the investor. If the cost of a diamond has increased over the year, for example, by 10%, then the profit from the sale of a diamond after a year of ownership may not cover the costs. Therefore, diamonds are more often bought for the long term.

What should an investor pay attention to when buying diamonds?

On the documented authenticity and quality of the stone, on the legality of the transaction, on the dynamics of price changes for this category of stones. Documents confirming the authenticity and quality of diamonds are independent expert opinions of gemological laboratories and certificates. Independent is the key word here. If there is no independent expert opinion on the stone, then the buyer must 100% trust the seller that the authenticity of the stone and quality characteristics are determined professionally and without prejudice.

 

When buying stones, it is important to pay attention to whether the seller gives a certificate confirming the characteristics of the diamond. It is better if the certificate is from one of the reputable international organizations. These include: 

  • Gemological Institute of America (GIA)
  • Antwerp Diamond High Council (HRD)
  • International Gemological Institute in the USA, Belgium, Canada, India and Japan (IGI).

 

At the same time, experts explain, it cannot be ruled out that the certificate will be fake, and the clarity and color of the diamond will be overestimated. Therefore, the stone can be given for verification. In Ukraine, such services are provided, for example, by the State Gemological Center.

Is it easy to sell a diamond?

If buying a diamond is not a problem, then selling it if necessary will be much more difficult. There are companies specializing in the purchase of diamonds, but it is important not to run into scammers and not cheat in the transaction.

 

Media contact:

Person name: Reuven

Country: USA

Company: Magnificent Antwerp Diamonds

Email:    [email protected]

Website:    https://madgemstones.com/