ACQUIRING A DIAMOND:
FINANCIAL COMPANY OR JEWELLER?
These intermediaries have started publishing diamond price quotations that differ markedly. The heterogeneous price quotations, published in print and online, create great confusion among the public.
The Jeweller needs to go back to the heart of his or her role, that is becoming Competent, Professional and Specialised in this arena. In this way the Jeweller can become the consultant to the public who are available to invest.
DIAMONDS OR MONEY?
- Diamonds are accepted and exchanged around the world
- They are anonymous
- They do not get damaged
- They can be transported easily
- They are exempt from inheritance and capital gains tax
- They are rare
- Difficult to recover if lost
- Difficult to specify exact market value
- They do not guarantee a real yield
- Long term investment, not short term
- High risk of fraud
An approach is required that is different to that reserved for classic financial instruments: shares and bonds
- The diamond is not a financial asset
- It does not create interest
- It is not a speculative instrument but protects family wealth
- It is to be set aside and saved for medium/long periods
Objective: to diversify and protect family wealth from speculative events and political and socio-economic uncertainties
THE DIAMOND IS A “USABLE SAFE HAVEN ASSET”
- It can be worn, exhibited and given
- It is easily transportable
- It does not require management and running costs
- It can be easily protected because of its size
- From the 1970s until now it has risen and fallen in value but it has resisted speculative shocks in recent decades
“The biggest value in the smallest size”
- According to various studies, easily found on the internet, in the last 15 years, diamond prices have avoided the sharp volatility seen in the gold price, countering the negative effects of inflation
- The diamond market is managed by an oligopoly of operators who put the brakes on speculative excesses.
- Also in periods of great depression, diamond prices do not suffer massive falls
- Obviously other socio-economic factors can come into play in the relationship between gold and inflation -factors that can counteract all the considerations mentioned earlier.
WHAT IS THE RIGHT PRICE FOR DIAMOND HOLDINGS?
There are two international reference lists for polished diamond prices:
- RAPAPORT – created by Martin Rapaport in 1978
- IDEX – created in Belgium in 2000
The prices are based on an average taken from purchases and sales of diamonds at an international level.
THE SALE PRICE OF DIAMONDS
Each diamond is unique as is the price attributed to it based on its intrinsic characteristics and variations of the market. The sale price of the diamond should take into consideration the following factors:
- Rarity and characteristics
- Price of acquisition
- Current prices
- Typical discounts
Certification enables the diamond to have a type of identity card that is internationally recognised. The most important institutes that release certificates are:
- IGI (International Gemological Institute)
- GIA (Gemological Institite of America)
“We debunk the myth that diamonds to be held over time,
are only and exclusively certified diamonds in Blister”
Apart from certified diamonds in Blister, it is possible to refer to models of classic jewellery that permit:
- PRESERVING THEIR VALUE OVER TIME
- MAINTAINING FAMILY WEALTH
- ENJOYING USE OF THE ACQUISITION
With the acquisition of a classic jewel, the client can enjoy wearing the diamond until the moment of its eventual re-sale.
Placing money into diamond jewellery whose value can grow over time signifies safeguarding one’s own spending.
KEY CONTACT FOR INFORMATION
If you wish to invest in diamonds or diamond jewellery, you may contact the number +39 0444 320788 or send an email to email@example.com You will be put into contact with our specialist consultants who will seek to meet your requirements.