Diamonds carry an intrinsic and sustained value accumulation capacity. Recent indicators and studies project a further increase of the diamond prices for the coming decades. This anticipated price increase is mainly triggered by the combined effect of favorable supply and demand trends.
Diamonds do not undergo any alteration over time, they are easy to maintain. The average diamond is approximately 2 million years old. This fact in itself adds to the long term value of diamonds, as there is no depreciation element to take into account. In most countries, profit gains on the sale of diamonds are generally speaking not taxed, assuming the seller is not an active professional in the business.
Significance of investment in Diamonds:
Of course, diamonds are not totally immune to a decline in prices. Between September 2008 and October 2009, when the fall of Lehman Brothers triggered one of the biggest financial & banking crises of all times, diamond prices declined by about 16,5% on average. For comparison: the price of gold fell by more than 21%, platinum by 59%, the S&P 500 dropped with more than 52% and the Shanghai stock exchange plummeted with more than 69%. When it comes to investing in diamond jewelry, it’s important to consider what holds value best in the market, as well as what will be the easiest to sell.
Nothing was equal to the challenge this worldwide crisis posed, but polished diamonds proved to the most crisis-resistant. This remarkable resistance was already apparent in earlier crises, such as the crisis at the end of the nineties or the stock market crash of 1987.
Only in the early eighties did diamonds prices decrease sharply. This reason was a worldwide distorted & speculative mindset, with banks financing artificially inflated stocks instead of concluding sound and economically justified business transactions. Nowadays, banks specialized in investment diamonds have modernized significantly and are thus better equipped to assess the stocks & trade receivables of diamond companies. It is thus unlikely that history would repeat itself and that we would face a similar crisis.
This is even more true for larger diamonds. Their rarity will cause their prices to rise exponentially, resulting in a greater exclusivity. Now is the time to purchase an investment diamond at a correct price.
The diamond price index shows an upward trend and has an inherent and lasting crisis resistance. This makes diamonds an excellent investment.
Discover more detailed information and important facts regarding diamond prices.
When it comes to investing in diamond jewelry, it’s important to consider what holds value best in the market, as well as what will be the easiest to sell.
More rare diamonds are considered more desirable, across the board. Colored diamonds and exceptionally high-quality white diamonds. Naturally colored diamonds are incredibly rare, with red and blue diamonds being the rarest. But pink, orange, green, and yellow diamonds are also quite rare and are, therefore, highly desired.