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Have you ever heard of investment diamonds?
In this guide, you'll learn what they are and why you shouldn't underestimate them as a valuable investment. Read where you can buy diamonds and why the certificate is so important. What about the safety of investment diamonds and where you should store them? This is also explained.

 

Where to Buy Investment Diamonds

There are only a few retailers who specialize in investment diamonds. It is not recommended to buy your investment diamonds from jewelers or precious metal dealers, as they charge high margins. The authenticity of the diamond is proven by the laser-engraved certificate number, which is located in the girdle or the edge list. This inevitably links the diamond to the corresponding certificate.

If you want to buy investment diamonds, you should seek detailed advice from the retailer/advisor. If you want to buy them online, the consultation should be conducted over the phone. In this context, discuss whether a buyback is possible. Of course, you should also be informed about the purchase prices during the consultation. Current prices can be found in the monthly ADIAP™ price list for guidance.

 

If you plan to purchase investment diamonds online, play it safe and check the shops beforehand. Check whether the address and telephone number are included in the imprint. A commercial register entry must be available. This includes the registration number. Make sure a Trusted Shops certificate is available and read the customer reviews.

 

Don't buy investment diamonds without a diamond certificate

You need a certificate when purchasing investment diamonds. This certificate lists all of the diamond's properties. For your safety, you should never go without it, even if it's not an investment diamond, but simply a piece of jewelry. One renowned certificate issuer for diamonds is the GIA (Gemological Institute of America). This issuer impresses with its strict requirements and good ratings.

Diamonds weighing less than one carat receive a dossier from GIA as a certificate. The dossier number is laser engraved into the circular list of diamonds. Diamonds weighing one carat and over receive a grading report as a certificate from GIA. Laser engraving offers even greater security. It prevents confusion and is included in the circular list.

 

The grading report contains the same details as the dossier. It also includes the diamond plot. This is a graphical representation of the inclusions and visible flaws on the stone. The grading report offers protection through various security features, including microprinting and a hologram. This protects you from counterfeiting. The certificate's QR code is one of the most important testing tools. It redirects you to the GIA database. The characteristics of the diamond certificate must be identical to those in the database.

In addition to GIA, there are other issuers of diamond certificates. These are IGI (International Gemological Institute) and HRD (Hoge Raat voor Diamant).

 

Do you have to expect losses when purchasing investment diamonds?

No, you don't have to expect losses when purchasing diamonds. Like other precious metals, they are so-called real assets. At the same time, they are scarce commodities. They cannot be reproduced at will. Diamonds have been popular gemstones for thousands of years, and this remains the case today. Therefore, there is a natural demand.

Since there is no risk of total loss, investing in investment diamonds is the primary reason. This is different with bonds, stocks, bank accounts, and life insurance. Here, there is always the risk of total loss. This is one of the main reasons for investing in diamonds.

 

Short-term speculation with investment diamonds: Is it possible?

Diamonds are unsuitable for short-term speculation. Trading is subject to a VAT rate of 7.7 percent in Switzerland and 19 percent in Germany. Furthermore, the spreads, i.e., the differences between buying and selling prices, are large. Compared to the weight of gold, trading diamonds is more advantageous. Just one gram of a five-carat diamond achieves approximately the same value as ten kilograms of gold, namely several hundred thousand US dollars.

 

If profits are to be taxed, the handling is the same as for other precious metals or gold. If you sell investment diamonds after a holding period of at least one year, the profits are not taxable. Before that, they are considered a private sale subject to income tax.

 

How should you optimally store your investment diamonds?

The following are important for when storing diamonds, factors such as security, cost, and access are important.

If you want to store investment diamonds at home, you can keep them hidden. If your investment diamonds are insured, they will be replaced in the event of fire or theft. Good hiding places include shoes, books, and the like. Other advantages include immediate accessibility and no costs. Nevertheless, you should consider more security.

 

Do you have a safe at home and want to store your investment diamonds there? Immediate accessibility is also a plus. While security is increased, complete protection against break-ins and theft is still not guaranteed. Purchasing and installing the safe incurs one-time costs. These vary depending on the type of safe. You can insure diamonds stored in the safe. The amount of the insured value depends on the quality of your safe's security.

 

You can also store diamonds in a bank safe deposit box. Access is restricted here, as it is only possible during the bank's opening hours. Also consider the likelihood of banking crises. This can also limit access and is difficult to predict. However, the advantage is that the security of your investment diamonds is increased in a bank safe deposit box. There are ongoing costs, but they are quite low.

 

You can also store investment diamonds in private safe deposit boxes. Not only banks offer this option, but also private companies. Access and security are similar to those of bank safe deposit boxes. On the other hand, the costs are higher. There are no risks associated with bank safe deposit boxes. For investments of approximately $50,000 or more, storage in a bonded warehouse is recommended. This offers security without having to pay VAT. Furthermore, the diamonds can be sold more quickly.

Summary of Investment Diamonds

 

Diamonds are an alternative investment for you. Make sure you get comprehensive advice and sufficient security when purchasing. A diamond certificate is also important because it proves their authenticity. You don't have to worry about losing your investment completely. These are real assets. Therefore, investing in diamonds is recommended.

When storing your new investment, consider factors such as access, security, and cost.