Diamonds are not only a beautiful option for jewellery they also offer significant investment potential. There are a number of reasons why Divinity Diamonds believes investing in diamonds in Australia offers great potential.
• Diamonds have an existing history of price appreciation.
• Can provide a hedge against inflation.
• Now have an internationally recognised system of standards which has increased the liquidity of diamonds as an investment.
• They offer high portability, ease of storage and complete privacy and ownership.
• Diamonds as an investment have low maintenance and transaction fees.
• Extremely flexible investment as an existing portfolio of diamonds can be sold off at different stages when necessary unlike more fixed investments such as property which can only be sold in its entirety.
• An investment which can easily cross currency boundaries and be bought and sold in different currencies.
• As a natural resource high quality larger diamonds are becoming increasingly rare while demand for them increases rapidly. This variation between supply and demand has created a greater value appreciation of such stones, making investing in diamonds increasingly profitable.
When it comes to investing in diamonds advice, here at Divinity Diamonds we propose two different strategies.
1. Loose polished diamonds: Divinity Diamond investment advisers can talk you through the importance of loose polished diamonds as an integral part of your investment portfolio. These diamonds have a pre-established market for when you are planning to resell. This is because not only will other diamond investors be looking to buy but also a second class of buyers who are buying diamonds for jewellery design.
2. Diamond jewellery: Diamonds set into jewellery are also viewed as an investment however may not be as liquid as loose polished diamonds. The primary benefit of this investment category however is that it can be worn and enjoyed immediately. Also it makes for a great gift and heirloom piece to hand over from one generation to another.
TIPS FOR INVESTING
Before you begin investing in diamonds it is a good idea to read through our diamond education package to ensure that you understand all of the characteristics of diamonds. Some of the characteristics of stones that are most important for jewellery may be different than those that are important for investment purposes.
Colour is a very important quality when it comes to investing in diamonds. Many investors usually opt for D grade colourless diamonds as these are extremely popular and appreciate in value. However rare coloured fancy diamonds (especially pinks) are also popular with investors as these are extremely rare and have a ready collector’s market.
Many investors also prefer to buy round diamonds as investment stones, because these are easier to sell, thus giving you a wider market when you wish to sell. On the other hand, many investors are also keen to buy fancy shaped diamonds as these can achieve a high premium if the right buyer is found. They have the potential to achieve a greater profit margin however it is very dependent on finding the right buyer.
If you wish to buy diamonds as an investment please call us 1800 884 458 to speak to a 'diamonds as an investment' professional.