Introduction to investing in diamonds

Diamonds are coveted worldwide due to their luxurious appearance, brilliance, and substantial intrinsic value. However, the diamond’s future value is the most crucial element for investors. What determines whether a diamond will go up or down in value? How much depends on the financial market and the diamond market’s specific features?

The diamond industry was almost entirely controlled by the diamond giant De Beers in the last century, with 80% of all rough diamonds in the world in their possession. They thereby attempted to monitor global demand and therefore also the prices. These days the De Beers share has been reduced to 20%. The current world leader Alrosa has taken over their leading position with 28% of the diamond market. How has the price of the diamond evolved? What role does De Beers still play today?

Diamonds have gained more popularity with investors than gold. A report released by De Beers, a large diamond company that has an almost-world monopoly on diamond, showed that the Indians are the largest group of buyers. It is very popular to buy diamonds as an investment. But there are a couple parameters that you have to keep in mind before you buy diamonds yourself.

Just as certificates, laser inscriptions guarantee the quality and authenticity of loose diamonds. The inscription lasered into the diamonds is a unique ID (certificate number), the same as on the certificate. If you want to buy loose diamonds, you should therefore always check if the laser inscription corresponds with the certificate number.

With historically low interest rates on saving accounts which continue to drag on and risky investments which do not suit every investor profile, alternative investments such as diamonds are now becoming ever more popular. What if I do not know anything about diamonds? This is not a problem with these 6 tips and a team of diamond experts at your disposal.

• Belgians remain loyal to the savings account despite low profitability
• Availability and low risk are the biggest incentives
• Diamond as an investment offers a great alternative with low risk