Which diamonds are suitable for investment?
1. Which diamonds are suited for asset protection?
The possible purchase of diamonds for reasons of assets protection is reasonable if financial liquid capital of at least €5,000 exists so that the basic requirements of quality and size can be fulfilled. These requirements are absolutely necessary for diamonds that shall serve assets protection. The most important criteria of a diamond's suitablity for assets protection are compiled here.
2. Which forms and qualities are especially good for assets protection?
According to our decade-long experience, diamonds with outstanding quality are especially suitable for sustainable assets protection, as the best always retains its value. This is true for the diamonds' color as well as their clarity. Suitable diamonds should have a brilliant cut, which is a round cut with 56 facets. This classic amongst diamond cuts is widely spread (over 95% of all diamonds). For this cut, the most detailed standards of quality control apply. It is the highest ranked cut of traditional forms. It is equally important that the brilliant's cut is "excellent".
3. Does it make sense to invest in rarities?
Rarities are very large diamonds as well as diamonds in natural (!) colors. Diamonds in very intensive colors as red, blue, and yellow are sold at collector's prices that lie distinctly above those of colorless diamonds. The cut is less important in this case. For assets protection purposes, these stones can only be taken into consideration for large portfolios. As with all collector's items, fungibility is limited.
4. Is it reasonable to invest in uncut diamonds?
The uncut diamonds' market follows completely different rules than the market for cut diamonds. Apart from single stones starting with a size of 10 Carat, uncut diamonds are being sold in large bundles. Detailed certificates about quality criteria as it is the case with cut diamonds do not exist. Therefore, the determination of value is a subjective one. The addition of uncut diamonds to large diamond portfolios can however be useful under certain circumstances.