Mistakes to avoid when buying diamonds!
1. Are diamonds suited for short-term speculations?
Absolutely not. Diamonds are only suited for medium- and long-term investments. There are no speculative profits to be achieved by buying and selling diamonds on the short term.
2. Are synthetically manufactured diamonds suited as investments?
Absolutely not! Thanks to huge progress in technical developments, it is possible today to imitate the formation process of diamonds and produce so-called "synthetic diamonds“ inexpensively. Even if these are, mineralogically speaking, real diamonds of a quality that is even suitable for jewelry, they do not meet the necessary criteria of diamonds suitable for assets protection. The almost limitless manufacturability of these stones is the opposite of the rarity of natural stones with high quality. Diamonds that are of natural origin but whose quality has been technically improved are also not suited for assets protection purposes. Serious certificates will explicitly denote these changes.
3. Can I buy diamonds via phone?
Diamonds should not be purchased via phone if information about the selling company was not obtained before. In the past, there have been several cases of dubious, partly criminal "investment consultants" who promised phantasy returns, value increases, rarities, qualities, etc. via phone. Additionally, you will be not able to have a look at the Terms and Conditions via phone.
4. Are private certificates suited for assets protection?
Even if the graduation of price-determining features has been performed in a serious manner and was documented in a certificate, diamonds with private certificates do not fulfil the requirements for assets protection purposes as the certficiate has little to no meaning in the case of a resale. This can even be the case for reliable national institutes that have no market position in other countries.
5. What do you think of welded diamonds?
Sometimes, diamonds are shrink-wrapped into plastic chips. This seems to be useful at first glance. These chips come with a hint that any warranty for its contents expires once the packaging was opened. Due to negative experiences in the past (fakes, confusions, etc.), diamonds in professional trade are almost exclusively handeled in opened condition. This way, verification of the stone is possible at any time, whereas originality and features of the diamond cannot be reviewd when shrink-wrapped.
6. What do I need to know when I hand over my diamonds to a third party?
The handing over of loose diamonds to third parties which are strangers without any recognizable reputation, e.g. for jewelry manufacturing, valuing or a second classification, should be avoided due to the possibility of confusion. Make sure that the lasered code on the stone with the certificate's number is still visible should the diamond be turned into jewelry.