Investment in diamonds

World Diamond Group
In a strongly globalised era, where information is readily available, the market requires:

Specialisation | Professionalism | Competence

Diamonds – valuable assets to safeguard

The financial crisis led consumers and investors to seek a so-called SAFE HAVEN. In the last few years demand for diamonds from private family wealth has created a new market.

New players, who were not accustomed to diamonds and jewellery, that is operators in financial and corporate services, have vigorously entered the diamond market.

Supply via companies sponsored by financial promoters

Companies sell certified diamonds at prices typically double those in jewellery. They do not guarantee re-purchase, but obligate the customer to re-allocate the diamonds, applying new commission costs. They apply a pricing policy that brings confusion and doubts upon the entire sector generating a crisis of confidence in the diamond as a safe haven asset.

The opportunity of the jeweller

In jewellery there is always less diamond jewellery on show than other products. There is a continual loss of specialisation, and an erosion of the true nature of the jeweller. Few operators are seeing a recovery in standards of professionalism with regard to gold and diamond jewellery.

Acquiring a diamond:
financial company or jeweller?

These intermediaries have started publishing diamond price quotations that differ markedly. The heterogeneous price quotations, published in print and online, create great confusion among the public.

The Jeweller needs to go back to the heart of his or her role, that is becoming Competent, Professional and Specialised in this arena. In this way the Jeweller can become the consultant to the public who are available to invest.

Diamonds or Money?

For

  • Diamonds are accepted and exchanged around the world
  • They are anonymous
  • They do not get damaged
  • They can be transported easily
  • They are exempt from inheritance and capital gains tax
  • They are rare

Against

  • Difficult to recover if lost
  • Difficult to specify exact market value
  • They do not guarantee a real yield
  • Long term investment, not short term
  • High risk of fraud

What it means to convert money into diamonds

An approach is required that is different to that reserved for classic financial instruments: shares and bonds

  • The diamond is not a financial asset
  • It does not create interest
  • It is not a speculative instrument but protects family wealth
  • It is to be set aside and saved for medium/long periods

Objective: to diversify and protect family wealth from speculative events and political and socio-economic uncertainties

What it means to place money in diamonds

The diamond is a “usable safe haven asset”

  • It can be worn, exhibited and given
  • It is easily transportable
  • It does not require management and running costs
  • It can be easily protected because of its size
  • From the 1970s until now it has risen and fallen in value but it has resisted speculative shocks in recent decades

“The biggest value in the smallest size”

  • According to various studies, easily found on the internet, in the last 15 years, diamond prices have avoided the sharp volatility seen in the gold price, countering the negative effects of inflation
  • The diamond market is managed by an oligopoly of operators who put the brakes on speculative excesses.
  • Also in periods of great depression, diamond prices do not suffer massive falls
  • Obviously other socio-economic factors can come into play in the relationship between gold and inflation -factors that can counteract all the considerations mentioned earlier.

The trend in prices according to Rapaport over the last 20 years

What is the right price for diamond holdings?

There are two international reference lists for polished diamond prices:

  • RAPAPORT – created by Martin Rapaport in 1978
  • IDEX – created in Belgium in 2000

The prices are based on an average taken from purchases and sales of diamonds at an international level.

The sale price of diamonds

Each diamond is unique as is the price attributed to it based on its intrinsic characteristics and variations of the market. The sale price of the diamond should take into consideration the following factors:

  • Rarity and characteristics
  • Rapaport
  • Price of acquisition
  • Current prices
  • Typical discounts
  • Markup
  • Consultancy

Certification

Certification enables the diamond to have a type of identity card that is internationally recognised. The most important institutes that release certificates are:

  • IGI (International Gemological Institute)
  • GIA (Gemological Institite of America)
  • HRD

Diamond jewellery

“We debunk the myth that diamonds to be held over time,
are only and exclusively certified diamonds in Blister”

Apart from certified diamonds in Blister, it is possible to refer to models of classic jewellery that permit:

  • PRESERVING THEIR VALUE OVER TIME
  • MAINTAINING FAMILY WEALTH
  • ENJOYING USE OF THE ACQUISITION

With the acquisition of a classic jewel, the client can enjoy wearing the diamond until the moment of its eventual re-sale.
Placing money into diamond jewellery whose value can grow over time signifies safeguarding one’s own spending.

Key contact for information

If you wish to invest in diamonds or diamond jewellery, you may contact the number 800 960 333 or send an email to info@diamondinvest.it You will be put into contact with our specialist consultants who will seek to meet your requirements.