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.
The economy in India has grown significantly, which also increases demand for luxury products. In India, deciding to buy diamonds is thus a logical consequence of the favourable economic climate. They see a diamond more as decoration then as an investment. And although at the same time the demand declined in China, the prospects remain positive. Buying raw materials, such as diamonds, as an investment remains a smart move from which you will benefit in the long run.
It must be clear that when you buy diamonds, you have to pay attention to the global economy, especially for the price of diamonds. In addition, the political climate is also closely linked to this. Even the election of Trump affects the price of diamonds.
In spite of the certification process, it is still more difficult to buy diamonds than gold. Financial advisers therefore recommend you to only start to buy diamonds if you have the necessary know-how. You should focus in particular on the importance of the 4 C's and how the price of diamonds is determined.
Although it is recommended to buy diamonds as an investment if you have the necessary knowledge, the lack of price transparency is the other side of the investment medal. This is certainly more evident with gold. Fortunately, hard work was done so that a favourable investment climate could be created for diamonds. The certification system of independent laboratories, such as GIA, played a big role here. The confidence of the investors grew, which again stimulated the demand for diamonds.
Given the many parameters that you must pay attention to before you buy diamonds yourself, it is advisable to solicit a partner who has both technical, financial and market knowledge. In addition, it is wise to diversify your investment portfolio.
Would you like to buy diamonds? Find the perfect diamond and request a price offer or contact the experts of BNT Diamonds.
