DIAMONDS AS INVESTMENTS
In the last 20 years, the price of the rare natural coloured diamonds like, for example, 1.0-karat Fancy Intense Pink, has raised 30 times. The investor’s desire to find an alternative investment instrument, capable of guaranteeing long-term capital preservation for future generations, is the main reason behind this growth.
ADVENTAGES OF INVESTING IN DIAMONDS:
1. The concentration of large sums of money in a small stone
According to the Rapaport, a 1.0-carat best-quality white diamond was worth $20,000 before tax in December 2021. Or, for example, a 2.02 carat (0.4 gram) Fancy Intense Blue diamond was sold by Sotheby’s in November 2018 for $3,354,041.
2. Compact storage
Lightweight small diamonds can be stored in a safe deposit box or in a home safe.
3. Transportability
Diamonds are easy to move around the world, and if an investor finds himself in a crisis in one country, he can sell a diamond in another country.
4. You can use the diamond for as long as you like
Diamonds don´t have an expiration date and don´t go out of fashion. Diamonds are forever.
5. Diamonds are almost unaffected by inflation
Over the entire period of diamond sales, they have proven to be a reliable means of capital preservation.
6. Diamonds can be used as jewellery and not just stored in a safe
Such jewellery can be the beginning of a family jewellery collection.
7. Long term investment
Diamonds are a natural material, the amount of which doesn´t increase. Diamond production is declining, which leads to a constant stable increase in price of diamonds. For example, in 2020, the Argyle diamond mine was closed, this led to a reduction in the production of pink diamonds in the world by almost 90%. Consequently, prices for already very expensive pink diamonds will rise even more.