The first thing to check when looking at how to invest in diamonds is the world-recognised Rapaport diamond price index. And, this index has gone up to 16.3% recently.
Diamonds can be a good hedge against inflation but they are a high risk. If buying loose diamonds, then its essential to obtain a grading certificate which will detail everything about the diamond including it’s weight, clarity, cut and color. If buying direct, then ask for trade laboratory report.
Buying Antique Diamonds
A more certain area of value lies in antique diamonds. Antique diamonds were usually cut by hand and are more rare than regular new diamonds. They only qualify as antique once they hit the 100 year old mark. The value of these diamonds in particular is consistent and rising, it’s also much higher than new diamonds because of the rarity factor. A few tips for investing in antique diamonds:
- Learn the various cuts of older diamonds so you can identify them easily.
- Cracked, scratched or damaged items will have little value.
- It’s essential to invest in high quality antique diamonds only.
With the growing wealth of India and China has come a surge of interest in precious stones for investment. Hence China and India are largely driving the uplift in the markets.
Supply though, is waning. As recently as 2008 saw all the major producers cutting back on the production of diamonds. As with all investment classes, when supply wanes and demand rises then rising prices will surely follow.
5 Tips On How To Invest In Diamonds
- Buy diamond jewelery for the long term and hold, as values will rise in the long term.
- Buy into companies which mine or those that explore for the stones themselves.
- Check out the ten or so specialist diamond companies that are listed on the Stock Exchange.
- Buy shares in an exploration company. This is a high risk, high reward way of investing.
- Buy shares in a company which has a diamond producing mine.