You were already aware of the fact that investing in diamonds is a valuable addition to your portfolio. They represent high returns, are virtually crisis-proof and even have a major emotional value. But how do I go about adding the right diamond to my portfolio? What should I pay attention to during the purchasing process?
Start at the beginning and with white diamonds this is with the 4C’s. If you have spotted a coloured diamond, then make sure you specifically enquire about this too. This is because colourless and coloured diamonds are very different types of diamonds. With both types you will need to pay attention to very different things and you will therefore also buy them for different purposes.
Do keep in mind that an investment in diamonds will form part of your total investment portfolio. Decide on the ratio your diamond can represent in relation to the rest and stick to this.
Do not put all your eggs in one basket. If you are planning an investment of €20,000, then consider spreading your money across 2 to 4 diamonds. Do not invest in various different diamonds of the same type. Are you after a pink diamond? Then make sure you buy a different colour diamond too. You can also alternate the diamond shape or colour intensity.
Diamonds are not shares. The price is not set by thousands of buyers and sellers who place online offers on a platform. But it is possible to compare the different diamond prices online until you find the right one.
There is not much point in investing in something everyone already has. Selling on is going to be difficult if the supply on the market is large and you are competing with countless other suppliers. However, a rare coloured diamond will allow you to tune into a different division. These are rarer, more sought after and, as a result, also simpler to sell on in the right market.
This is pretty much the basic rule. You are best off buying a single diamond with a GIA certificate. This is the best known and strictest label. When the time comes to sell your diamond, your buyer will also want to see your GIA-certificate.
You can also buy diamonds in an item of jewellery. This can both positively and negatively affect the price. On the one hand, the craftsmanship of the jewellery will add to the value, whilst on the other hand individual tastes will suddenly play a role when selling. So make sure you opt for a timeless piece of jewellery for the smoothest possible resale.
Ask the right questions. We all live in an era of ‘sharing’. You will definitely be able to find experienced diamond investors who can provide you with additional advice.
How can I obtain reliable information? Ask BNT Diamonds’ diamond experts for advice.
