Investment Diamonds

Diamonds as a safe investment

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Wealth storage for the future

Why invest in diamonds?

Largest value in the smallest space, inflation protection, low volatility: diamonds.

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A proven recommendation for a long-term and crisis-resistant investment mix is simple but efficient.

The magic formula is:
⅓ fixed-income securities
⅓ real estate
⅓ movable goods and/or commodities

Investment diamonds have great potential, especially for movable goods. Diamonds bundle the greatest value in the smallest space. This makes them easy to move and easy to trade worldwide. Trading in diamonds is not regulated by the stock exchange and price manipulation does not occur with natural diamonds. Their performance is less volatile, constant over the long term and thus offers a very good degree of value security. As a tangible asset, diamonds offer good inflation protection and are thus highly recommended as a medium to long-term investment.

Diamonds have always been surrounded by something mysterious that captivates many people. We too, are fascinated by the complexity and magic of diamonds. But diamonds also have many advantages that make them an ideal investment:

  • Apart from gold, diamonds are the only internationally accepted alternative currency
  • The value of a diamond is the same worldwide
  • Diamonds are not subject to any legal regulations and can be traded freely
  • The volume to value ratio allows for very low storage and maintenance costs
  • Increases in the value of diamonds are tax-free if there is at least one year between purchase and sale
  • Diamonds maintain their value even during recessions, price drops are historically very short-lived and price recoveries occur quickly and sustainably

The stability of value and the increases in value to be expected in the long term are also based on the fact that diamonds are natural raw materials and most relevant deposits are known worldwide. Thus, the production quantities are finite and a shortage with an accompanying price increase is foreseeable.

Fancy colour diamonds have already shown a strong price performance the last years. After the most important mine for coloured diamonds, the Argyle diamond mine in Australia, finally stopped production in 2020, the market for these high-quality diamonds began to increase markedly.

A wonderful side effect of investing in diamonds: Only diamonds and high-quality art have a practical application in addition to the investment aspect. This circumstance in particular increases the emotional value of diamonds, which often outlasts generations.

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2.01 Carats; Color: D - Top River, colorless; Clarity: flawless; Cut: excellent;
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Summary

The stability of value and thus the demand for diamonds has been particularly evident in recent decades when things got turbulent in the financial markets and in politics. Similar to gold, diamonds function like a kind of fire insurance for a portfolio, except that we have an incredible value/weight difference here.
Example:
Today, 12/03/2022, $100,000 gets you about 1.6 kilograms of gold
Today, 12.03.2022 you get for 100.000 $ a 2 carat ( 0,4 Gram ) diamond in first class quality.

An investment in diamonds focuses first and foremost on value preservation.In direct comparison with investments in precious metals such as gold, the advantage for investors lies primarily in the significantly lower volatility and weight.

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A stable market with long-term potential

The performance of investment diamonds

There are no standardized prices for diamonds as each stone is unique. To provide an overview, the general price development is shown in indices for diamonds. Examples are the "IDEX Diamond Index" of the International Diamond Exchange that shows the price development of diamonds or the price list of "Rapaport".
The pricing calculations here are based on daily supply and demand figures that are gathered in the international diamond trade. We base our data on exactly the diamond index from IDEX and the Rapaport.
And you can see very clearly that the volatility of the diamond index is much lower than gold, silver or even cryptocurrencies in the long term.

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half carat
0.51 – 0.54 carat
one carat
1.01 – 1.04 carat
two carat
2.01 - 2.04 carat
All time
4 years
3 years
2 years
1 year
Performance of diamonds with 0.51 – 0.54 carat
(last updated 19.05.2022)
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Market Report, 12.03.2022

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On Friday, March 11, 2022, U.S. President Jo Biden introduced a ban on the import of non-industrial diamonds from Russia into the United States of America.

The USA put on 25.02.2022 the Russian diamond producer Alrosa and also its CEO indeed on a sanction list. However, the trade with diamonds of the company was not prohibited.

In 2021, Russia's Alrosa mined 32.4 million carats of rough diamonds and remains the world's largest producer. Alrosa has a nearly 30% share of the world's supply of diamonds and has generated revenues of more than US$4 billion. A 33 percent stake in the company is held by the Russian government.

The Jewelers Vigilance Committee said that all U.S. companies buying diamonds directly from Alrosa or any other Russian group must immediately cease all business. It is not yet clear in what way the ban would apply to diamonds that are of Russian origin but cut in another country, the organization added.

In the meantime, JVC urges great caution when purchasing diamonds and diamond jewelry from foreign companies that may use diamonds of Russian origin. We will keep you updated with the situation here.

In addition, JVC is urging U.S. companies to ensure their anti-money laundering programs remain active and to review Office of Foreign Assets Control sanctions lists.In a further move, the executive order also prohibits the export, re-export, sale, and delivery of luxury goods from the United States to Russia, whether directly or indirectly through the U.S.

According to JVC, this means that companies in the U.S. that have previously sold jewelry to or in Russia should stop doing so immediately.

Generally, the further progress of the Corona pandemic - Hong Kong continues to hold on to strict Corona rules - and that of the Ukraine/Russia war and the accompanying sanctions, availabilities of diamonds and customer demand will decide the further development of the diamond market. Currently, it looks like the prices for colorless and fancy colored diamonds will continue to increase.
China has already been able to reach corona pre-crisis levels in 2021. The remaining key markets are expected to follow in 2022. Some regions may also not succeed in returning to previous high growth rates until 2024.
Already in January 2022, a first significant step in this direction was recorded. After De Beers had increased prices, also for smaller diamonds in particular, by an average of 8 percent in the first sale of the year, diamond prices worldwide increased by more than 21%. ( Current in March 2022 )

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Summary

Diamonds are not suitable as a speculative object to achieve short-term profits. If you are looking for a long-term stable value investment with natural inflation protection, which you can monetize at any time worldwide, then you should think about investing in diamonds.
Kontaktieren Sie uns und wir beraten Sie bei Ihrer Investitionsentscheidung

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The main characteristics for the value of a diamond

The four C's

Basically, four quality characteristics determine the value of a diamond, the famous four Cs:

Cut, Clarity, Colour, Carat

These grading standards originate from the Gemological Institute of America (GIA), founded in 1931, and quickly became internationally accepted. Thanks to this classification, diamonds are eminently comparable worldwide and easier to trade.

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Cut

The most important aspect is the cut of a diamond. The colour, clarity and size of the diamond are predetermined. But only the cut with ideal proportions gives a diamond its full brilliance. The experience of the cutter, who shapes a rough diamond into a work of art, is the most important factor. A good cut brings out the fire of a diamond in the best possible way: the incoming light is reflected from one facet to another and bounced back through the surface of the stone. This is how the legendary fire of a diamond is created.

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Clarity

In addition to carbon, other components can also be embedded in the diamond during its formation. Like no other gemstone, the diamond can achieve a unique brilliance. It is considered flawless when it has no inclusions whatsoever. Depending on the quantity and size of the inclusions, these can hinder the complete reflection of light and thus limit the fire of the diamond.

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Colour

The third criterion in the evaluation of diamonds is the colour. The colour is indicated with letters from D to Z. D stands for the highest colour grade (colourless) and Z for the lowest with a distinct hue. Diamonds from D to H are called "white diamonds". From colour grade I, the stones have an increasingly yellowish tone.

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Although the first thing one thinks of when thinking of diamonds is a transparent stone, they are extremely rare in flawless white. Equally rare are the so-called "fancy colour diamonds". They have shades outside the D to Z colours and occur in all shades - red, orange, yellow, green, blue, violet, brown, grey and even black. These coloured diamonds are among the most sought-after pieces in the international diamond trade and promise high potential as an investment.

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Carat

Diamonds are measured in the unit of weight carat. One carat (abbreviation "ct") is equal to 0.2 grams. The carat number is usually given to two decimal places.

Since a two carat is much rarer than a one carat, it has an exponentially higher value. However, this value is only given if it also fulfils the other quality criteria. However, since the probability of inclusions increases with increasing size, these stones are even rarer.

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The inofficial fifth C

Certificate

To make diamonds more tradable, certificates were introduced at the beginning of the 20th century. In these, independent, recognised institutions confirm the authenticity of the stone.

In this certificate you will also find details of the four Cs as well as other detailed information. This information is also stored in a database at the issuing institute and can thus be subsequently checked at any time.

SEE ALSO CERTIFICATE CHECK

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In order to make diamonds and the corresponding certificates even more forgery-proof, the certificate number is engraved on the diamonds by laser engraving.

All diamonds sold by us offer this security feature. This allows you to match the number of the stone with the certificate and the certificate with the information stored in the certifier's database.

This offers you maximum security at all times.

Diamond prices

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