You cannot know what may happen tomorrow, thus you need to be ready for any unpredictable life event. You should be well prepared to meet the next day. As everybody knows, money means a lot in our life. You can buy a luxury house with a swimming pool, delicious dishes, clothes, and jewelry if you have enough money for it. However, during the recent years, a fear of money loss appeared. That’s why everybody needs to find out a reliable way to save money even when a currency is suffering from a major crisis. And there is a point of view that the diamond investment is a good solution. Is it so? When we take into consideration the fact that diamonds are so desirable on a personal level, it seems to be a good idea for investing.
So, should you consider diamonds as a good investment? What are the problems of diamond purchasing? Is it a difficult deal to resell a diamond? What is the quality certification? What should you know about diamond transactions? In order to help you to figure out whether the diamond investment is good for you or not, we have prepared great information below. Here you will find the useful facts about diamond investment properties and many other important things.
Diamonds as the Investment
Not everyone knows that diamonds is one of the best ways to invest money in. Why is it so? The answer to this issue we can divide into several points.
- Scarce resource. Indeed diamonds are increasingly scarce. There are no more new diamond mines. Moreover, the existing mines are depleted.
- Diamonds are durable. Diamonds do not break or wear off because they are the hardest substance on the Earth. Well, the only thing you can worry about is losing them.
- Sound investment. Diamonds are a sound investment: every stone is valuable because of the technical characteristics and they cannot be depreciated. Well, when you use diamonds as the investment, you will receive the peace of mind, because the stones will never be depreciated. Furthermore, they have nothing to nation states or the performance of other assets (such as shares). It means that the stone price does not change in other countries or with the performance of other assets.
- Inflation-Proof. Diamonds are durable and movable. Even if you do not want to use diamonds as the investment, you can buy a few to wear. Eventually, you can resell them when you are in need of money.
- Tax benefits. The loose diamonds belong to the category of private property. And they are taxed on capital gains when sold.
- Diamond demand. The demand on the stones rises every single year. Besides the fact that the existing diamond mines are depleted, everyone finds those stones very beautiful and even stunning. That’s why demand for them is only rising.
- International exchange currency. The stones serve as the international exchange currency. Their prices are set by the Rapaport Index due to the help of the Diamond Bourse.
- Good-looking. Even if you buy diamonds for investment purposes, you are not forbidden to wear them and show your friends. Since diamonds are durable, they do not break and wear off, so you may not worry about damaging them.
- Size choice. According to your budget, you can purchase a perfect sized diamond. Do not worry if you do not have enough money to buy a five-carat stone, you may choose the smaller one. There are one-half carat (0.51 to 0.69 carat) and two carats to five carats to choose from.
As you can see, diamonds can be the perfect investment. And diamond investment returns are predictable and easily achieved. Furthermore, diamonds have much more benefits than other money-saving alternatives.
Diamond investment nuances
In order to make the perfect investment in the stones, you should get familiarized with several points. Those points stress on things you should think over and solve or avoid.
- Spectacular diamonds. Those fancy color diamonds attract the attention of wealthy people, but no trustworthy investment diamond expert goes for them. In fact, those stones are thinly traded. Moreover, a customer is not offered the price transparency or timely resale liquidity. That’s why you should be aware of such spectacular stones and stay aware of them in order to avoid problems with reselling.
GIA. Your diamonds should be graded by the Gemological Institute of America (GIA). Furthermore, they should be confirmed by a trustworthy investment diamond expert.
Diamond purchasing problems
Before buying diamonds, you need to learn more about the diamond market. You should know the prices as well as all the important information to avoid a fraud. A diamond price is very expensive, thus, you should know what you pay for. You should know someone who knows everything about diamonds to help you with purchase. Only if you invest in the right way, you will achieve diamond investment returns.
Do not get fooled by advertising beautiful diamonds. Most likely those stones are worth far less than indicated. Do not be fooled. If you want to provide diamond investment properties, you need to know all the nuances because it is a very serious deal to invest money into the stones. If you do everything right, you will receive great diamond investment returns in the future.
Is investing in diamonds a good way of saving money? The answer is “yes”. There are a lot of benefits in using diamonds as the investment. Moreover, you should not worry about the devaluation of diamonds because the demand on the stones rises every single year. However, there is the risk of getting into a scam. That’s why you should stay away from stunning advertisings of beautiful diamonds. Take into consideration the diamond purchasing nuances in order to avoid the stones that are hard to resell. And when you are in the need of money, you can change your stones and receive diamond investment returns. Keep in mind, scams happen. Be on guard when buying diamonds.