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Secure Financial Investments: For and Against Diamonds

Secure Financial Investments: For and Against Diamonds

The diamond, the hardest of the materials currently known, has been sought after and desired for millennia by man, who has always instinctively recognized its inestimable value. Both for their unique beauty and for their uses, in fact, these treasures of nature have always been considered as the most precious goods existing, and not infrequently over the centuries it has been assumed that they have a divine origin. With the passing of time, however, the world has changed, and from ornaments for crowns and kings, diamonds have also become a bargaining chip in which to invest today.

Investing today in diamonds, an elitist and brilliant marketplace

It is obviously (and as well known) of an elitist and prestigious market, which has existed for relatively few centuries and is undoubtedly controlled by very few and enormous protagonists. It is, however, a particularly lively sector in this difficult historical and economic moment, undoubtedly due to the many advantages that the diamond trade brings: tax-free and of enormous value, these stones are accepted in every country in the world, they are small, easily concealable and as a safe haven they are a total guarantee against periods of crisis or the guillotine of inflation. Moreover, as already mentioned, it is certainly a market of prestige and ancient heritage, but although its roots are anchored to centuries of luxury and nobility, today the sector has deliberately opened up to private investors, although it certainly does not remain for all budgets.

In fact, the smallest diamonds on the market, those of 1 carat or 0.2 grams, can have an average value between 6,000 and 9,000 euros, while already a good quality two-carat diamond could easily be worth between 20,000 and 40,000 euros. A diamond is certainly a good investment, but given the size of the latter, it is important to rely on intermediaries able to certify the quality (and therefore the value) of the stone in order to avoid frauds of tens of thousands of euros. In today’s panorama there are many sites and brokers able to offer buying and selling services for investment diamonds, but recently even the banks themselves have begun to recommend them as a renewed form of investment, especially in this difficult time of crisis. Investing in diamonds, however, requires tenacity, patience and knowledge, as it is a long-term investment that also provides real returns only at the time of the final sale. In short, diamonds are a unique and atypical sector in the modern world of finance, endowed with countless advantages and disadvantages that we will now try to analyze briefly for our readers, so as to present a clear and precise picture of what it means to invest in investment diamonds in 2018.

How and where to invest today: for and against diamonds

Among the exclusive advantages of these precious stones is, first of all, the fact that they belong to the prestigious category of shelter goods, which are notoriously not affected by crises, wars and quotations, while they tend to keep their value high and constant. This is enough to consider diamonds as a safe investment, possibly with a view to diversifying the portfolio as, as mentioned, diamonds do not guarantee periodic earnings of any kind. They are also physical and tangible assets, which the daredevil investor wishing to save could simply keep under the mattress, thus avoiding to pay interest, commissions and installments to banks or financial institutions. They are also unique and limited, not to mention the fact that diamond is the hardest material existing in nature, which is why its use is also expanding in all technical, scientific and industrial fields. As an exclusive and precious commodity, diamond is then accepted worldwide as an international exchange currency, but even if you want to invest in diamonds in Italy, costs are not a problem: it is in fact a tax-exempt commodity that allows you to maintain a considerable privacy much appreciated by investors.

Unique and exclusive advantages in short, but this does not mean that investing in diamonds on the financial markets is simple or risk-free: it is in fact a complex and elitist market, right from the choice of the stone. There are in fact many parameters to establish the value of a diamond, but we have already dedicated many articles to this, while it is enough to remember that each stone (as natural) is unique and different from the others, which is why the final evaluation remains subjective and not absolute, measurable. In addition, it is often difficult to find a buyer, especially if we are talking about small-cut diamonds, a factor that very often unbalances investors right at the end of the investment path, and in these cases it is not uncommon unfortunately to suffer huge losses. In fact, it is a market with little liquidity and little transparency as regards prices, precisely for the reason just explained regarding the uniqueness of the stones, which are different in this sense also from the other refuge goods, in any case with a unit price. Diamonds are also quoted in dollars, a fact that exposes investors to exchange rate risk, especially now that the green card is linked to the scandals of the US President. Finally, as is well known, this is an area where there is no shortage of fraud, unfortunately, and there is no point in denying it, but this must certainly not discourage those who are willing to invest in diamonds today.


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