How to invest in diamonds?

Diamonds are one of the 12 birthstones that the Jewish historian Josephus identified in the I century and they have been traded for thousands of years. Diamonds have been traditionally appreciated among royalty and high class due to their brilliance and scarcity. As the Roman author and natural philosopher Pliny the Elder said:

 “Diamond is the most valuable, not only of precious stones but of all things in this world.”

That’s why they made such a wonderful alternative investment to diversify your portfolio and mitigate risk. Let’s discuss some tips about how to get the best deal to produce sturdy gains:

• Choose a reputable Diamond Expert. Diamonds are classified using the 4Cs and come with a variety of other specifications. Not every diamond is suitable for investment even if it is sold at a retail store or for a big brand such as Tiffany, De Beers, and the like. So it’s best to choose a diamond expert that sells diamonds at wholesale prices.
• Research your diamonds. The diamond expert will give you a wide range of parameters beyond the 4Cs that qualify a diamond for investment according to the present market conditions and from a historical point of view while ponderating the upcoming foreseeable trends.

It is highly recommended to purchase diamonds with a trustable certification such as GIA. In this way, you will have an independent world-recognized authority to ensure the diamond has the properties that are supposed to and that it is a natural diamond without any artificial enhancement or origin.

• Choose the right strategy. The goal when investing in diamonds is to target high liquidity ranges that also have a growing demand and with limited or even shrinking supply. The best example of this type is a fancy colored diamond in general and pink diamond in particular.
• Choose how to store it. Diamonds can also be enjoyed while making money for you. It is very common to wear the diamond in a ring or necklace and after a determined period of time unmounted and sell it out to cash in. In this way, you can get the best of both worlds. On one hand, you enjoy the glamour and social class that diamonds entail, and on the second hand, you are increasing your wealth.

Still, if you feel you would like to store away your diamond in a secure location, your diamond expert will be able to suggest professional options in this regard. So that the diamond remains accessible to you with the right security level that fits the value of the diamond.

What is the recommended time framework for investment?

Diamond prices have been sturdily beating inflation as gold has from a historical point of view. As the economy runs according to expansion and recession cycle, it is best to purchase diamonds when the global market is in a recession or crisis and hold onto the investment until the next economic cycle reaches its peak. Therefore the correct time frame is between 5 to 7 years to maximize earnings.

If you cannot wait that long, there are still other more aggressive options such as fancy shaped diamonds and top-grade diamonds such as D color Flawless that can give faster returns and high liquidity in shorter time frames.

Therefore, when discussing with your diamond expert make sure to mention your desired time frame and intended return.  Doing so will enable the diamond expert to propose the right portfolio that fits your budget and intention.

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