Despite the absence of a public trading platform, diamonds remain highly liquid assets. This liquidity can strongly vary depending which segments of the market we are referring to. These differences in liquidity require a different approach for each segment of the market. In general, we distinguish two categories: Commercial grade diamonds and Very rare diamonds.
Commercial grade diamonds are diamonds for which - notwithstanding their rarity - demand is widespread. Most demanded for investment purposes in this segment are colourless high quality round diamonds between 1 and 3 Ct with at least a G colour and a VS2 clarity, certified by a renowned laboratory: GIA, HRD & IGI.
This market segment has historically been very active, because these diamonds are commonly used in jewellery and therefore lends itself to a profitable resale. Assuming of course, a sharp purchase price, you can maximize your ROI.
Very rare diamonds are diamonds that have such unique specifications that they can only be sold to a small collector's market where pricing is primarily driven by pure speculation. This segment contains very large stones, intensely coloured stones or exceptionally well cut stones with fancy shapes.
The resale of this type of diamonds, often via auction houses, is very complex and requires expert guidance. Nevertheless, they have significantly increased in value over the last years so a lot of the attention of investors has shifted to e.g. coloured diamonds.
As any other investment, a diamond investment should be approached from a rational standpoint. When following our guidelines, diamonds have proven to be a very safe investment with a large variety of benefits. Unlike any other investment, a diamond can also create an exceptional, emotional value as they can be gifted to a loved one or handed down to the next generation.
All investors are advised to fully understand all risks associated with any kind of investing they choose to do. There is no guarantee that your investment will result in profits or that they will not result in losses.
