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Diamonds - As Investment

Although pure carbon, diamonds are special not only because of their revered beauty, but also because they can preserve wealth.

Besides precious metals, you might also want to take diamonds into consideration... Let's not forget, although "diamonds are a girls's best friend", men can also count them - when it comes to wealth preservation.

Diamond stone

Beautiful loose diamond in all its splendour...

Source: ©

The advantages of diamond investments is obvious: you can store substantial wealth in rather small space, they aren't metallic, so they can't be detected by metal detectors.

Disadvantages include: huge spreads between buying and selling prices, selling the diamond will be a slower and more complicated process than selling your precious metals, it must also be underlined that there are lots of fakes and - the artificial diamonds have a lower value than the natural ones.

Nevertheless, the evaluation of a diamond's value should include professionals (who could act as intermediaries between the seller and buyer) and it's a time-consuming and frequently sales price-reducing effort.

Diamonds occupy small space and their value is very high, but they're a lot less liquid than silver or gold. Selling them will be harder, not just because of the appraisal process, but also because finding a buyer can drag on for weeks, months or longer time (depending on where you live, of course).

There are no fixed prices.

Whether a stone is natural or artificial, whether it contains inclusions or not (and also the dimensions of the inclusions), the shine, the cut, the carats also count.

Determining a diamond's sales price is a complex process that requires careful analysis. If you have a certificate, then it will be a lot easier to sell you piece.

Selling price is frequently negotiable - but the number of dealers isn't high and in some countries they're very scarce. This means: the less there are, the stronger position they will have in negotiating the price.

One can purchase loose diamonds or jewelry containing the stone(s).
Eventually, it's always the stone that counts most and let's not forget - the stones can be re-used, even if the ring, pendant or other jewelry piece is badly damaged.

When should we invest in diamonds?

When our portfolio is already well-diversified and in case we have plenty of liquidity to invest.

Let's note: we mustn't confuse gold's karats with diamond's carats. The latter is a unit of weight, whilst gold's karat is a unit showing the concentration of gold.

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