Diamonds have a long tradition not only as exclusive jewelry, but also as valuable assets – a tradition that can be traced back to ancient times. However, as an investable asset, and thus as an investment, they were difficult to handle just a few years ago. A factor here is that investment diamonds long occupied an absolute niche market, to which non-experts had little practical access. However, there are now very interesting opportunities for investing in investment diamonds – they are easy to acquire and promise stable value growth. Investments in investment diamonds are possible even with a small capital outlay. For example, a one-carat diamond of investment-quality quality is available on the market starting at around USD 7,000.

 

Diamonds – a scarce commodity with long-term appreciation

Diamonds are ideally suited as a long-term investment: Their supply is becoming increasingly scarce, despite steadily rising demand. Due to their very high value density, they represent a compact and mobile asset. In times of crisis, they are hardly affected by losses in value.

 

In the medium and long term, investing in diamonds is an essential option. Over the past 60 years, diamonds have experienced a continuous and clear upward trend. Furthermore, the value of diamonds is subject to significantly lower fluctuations than the price of gold. On average, the increase in value of a one-carat D-color diamond with IF clarity during this period averaged ten percent per year. This will not change in the future. China and other emerging markets are experiencing rapidly growing demand for diamonds. Furthermore, diamonds are scarce. Many existing mines are already exhausted, and new deposits are rare. This makes diamond mining increasingly expensive, which also contributes to their value.

 

Ten Reasons Why Investing in Diamonds Is Worthwhile

 

1. Real Value

Diamonds have a value that does not depend on fictitious market attributions or promises of payment. Thanks to the long-term value development of diamonds, you also benefit from comparatively small investments below the 1,000 US dollars, euros, or Swiss francs mark.

 

2. Protection against inflation

High-quality and appropriately processed diamonds are a natural product and a scarce commodity worldwide. Their nominal value is increasing, among other things, because the global money supply is constantly expanding due to inflation. Diamonds are generally unaffected by inflationary tendencies.

 

3. Desired commodity

Diamonds are in high demand worldwide and are not only indispensable in jewelry production. They are also used for industrial applications – for example, as drill cores or superconductors. Among other things, diamonds have five times greater electrical conductivity than silver. The various applications for diamonds contribute to their scarcity on a global scale.

 

4. Durability

Diamonds are the hardest naturally occurring mineral. With a Mohs hardness of 10, they can only be cut by other diamonds. At 3,550 degrees Celsius, they have the highest melting point of all minerals. However, diamonds are made of pure carbon – when exposed to air, they are flammable at temperatures above 800 degrees Celsius. Nevertheless, they are significantly more fire-resistant than paper money, which ignites at temperatures as low as 240 degrees Celsius.

 

5. Maximum Value Density

Diamonds represent concentrated value. If you want to transport billions of dollars in diamonds, all you need is a briefcase. Due to their high value density, diamonds are an asset with particularly high mobility.

 

6. Monetary Value

You will always find a buyer for high-quality diamonds who will pay a reasonable price for them. Diamonds are therefore in direct contrast to paper money, whose value has historically repeatedly fallen to zero.

 

7. Discreet Asset

With diamonds, you invest your assets very discreetly. Your ownership is neither registered in the land register nor shown as a credit balance in an account. There have been repeated bans on owning gold throughout history. A ban on diamond ownership, on the other hand, is highly unlikely. Furthermore, the sale of diamonds is not subject to any reporting requirements, so your anonymity is optimally protected.

 

8. Less speculation

The diamond market is dominated by a few players. For many years, the South African company De Beers – now majority-owned by Anglo American – held a near-monopoly in diamond production and trading. It currently holds a market share of around 30 percent.

 

Market concentration tends to keep prices high, which benefits long-term investors. Furthermore, there are currently no significant derivatives for diamonds that would influence prices.

 

9. Exceptional Position

Every diamond is unique. While this makes its permanent valuation difficult, special pieces possess a unique selling point that can lead to their value being decoupled from general price trends.

 

10. Alternative to Precious Metals

When it comes to preserving wealth, investors focus primarily on gold and silver, in addition to real estate. As a result, there have been at least two massive precious metal shortages in Germany within the past three years. Diamonds are an excellent alternative to precious metals and, to date, an insider tip for wealth preservation because they have not yet reached the mainstream in this role.

 

Investments in Investment Diamonds - Attractive Even for Non-Experts

The market for investment diamonds was long considered difficult to access and lacking in transparency. However, the Ajediam Diamonds concept now also provides uncomplicated access for non-experts. This gives banks, asset managers, and financial advisors the opportunity to offer their clients a significant and lucrative investment class. The ADIAP™ price list ensures maximum price transparency.

 

You can find further useful information on investment diamonds in the publication "Investing, a Different Way", as well as in our library and our knowledge blog.

 

The specifications of a diamond matter

The rarer an investment diamond, the greater the chances of its value appreciation. Therefore, the specifications of a diamond are crucial for your advice or your purchase decision.

 

Investment diamonds

Valuable, stable and tax-attractive, diamonds are ideal as an inheritance or gift and are convertible worldwide.

The rarer, the better the price development

We recommend diamonds for long-term wealth preservation, not for speculation.

A diamond like the one shown here represents more than just premium quality. Of all diamonds available globally, only 0.4 percent possess these same characteristics. The AAA+ rating according to the ADIAP™ specifications is entirely justified for this specimen.

Historische DiamantpreiseHistorische Diamantpreise