Risks on stock market: invest in diamonds or not?

08 Jul 21

Shares and debentures
Savings and hedge funds
To invest in diamonds

Unless you are storing your cash in a sock under your bed, your money should always generate a yield. Dependable on the type of investment and its risks, profit can vary a lot. Shares can raise a lot of money, but you can also lose a lot. Savings won’t give you much profit, but it’s a safe alternative. BNT Diamonds compares if it is interesting for you to invest in diamonds.

Shares and debentures

To invest directly in particular companies via shares or debentures. If the company is profitable, you get a dividend as a shareholder. Financially healthy and growing companies can provide large profit. The volatility of shares can also be negative, more specifically when a company isn’t profitable, the investment is a loss.

While shares are a type of ‘giving money’, debentures are rather a way of ‘lending money’. When the predefined period of time has ended, your investment will be returned along with the interests. Debentures are safer than shares because time and interest are fixed at the beginning, therefore the profit can be calculated immediately. But the real question is if the company will be able to return on your investment and its interests at the end.

To invest in diamonds and raw material

Unlike with shares and debentures, when you invest in diamonds or raw material, you get as with real estate something materialistic in return. When choosing in which one to invest, keep your storage capacity in mind. To invest in diamonds is from this point of view very interesting, because not only are investment diamonds small, they are also wearable. In the period you are investing, diamonds can be displayed or worn. Compared to a barrel of oil… not so easily. The risk for investment diamonds is limited because of its slowly rising prices, small supply and growing demand.

Savings, with and without its conversion premium

On the contrary to all other types of investment as investing in diamonds, standard savings are 99,99% a safe investment. Before de financial crises of 2008 this was at a 100%. But now we understand that even banks can go bankrupt. The security of savings is thanks to the guarantee up to € 100.000. If a bank has gone into liquidation, then you will lose everything on top of that amount. This safe type of investing of course has another side: a limited profit. The average return is 0,05%, and according to experts it won’t rise in the near future. Only those who choose for a conversion premium can double its profit up to 0,1%, but must leave the amount unchanged for at least 12 months.

Are you interested to invest in diamonds or do you want to know more about the spread of your investment portfolio? Do not hesitate to contact our experts.

About Fabienne Rauw

BNT Diamonds Antwerp

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six years of experience at BNT Diamonds she acquainted well with the product and the marketing around it. Her degree in PR ensures that BNT Diamonds is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

With this article, BNT Diamonds strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.