Diamond Investment Value

Diamonds are a good investment, altough some diamond and gold merchants try to downplay this aspect of diamonds. But even the most emotionless and objective view of diamonds can’t ignore following points:

More than ever are tangible assets secure assets. Most securities, shares, bonds, insurances, etc have proven in recent times that they are quite risky.

Mobile tangible assets are more interesting and more stable than immobile assets. When we look at the economic crisis in South-East-Asia in recent years one thing is clear: although many real estate assets in Bangkok went down to 10% of their original value, diamonds, jewels and gold increased by about 100%.
In general you can say that during hard times, real estate goes down, whereas diamonds increase in value. Real estate is always measured in national terms, intangible assets are measured in international terms. Therefore you can avoid the devaluation of the domestic currency with tangible assets.

Diamonds are normally tax free, you don’t have to pay capital gains tax.

Because the price for diamonds isn’t a free market price, but mainly ruled by the diamond syndicate, the price has been stable for nearly a whole century. The price has been continously increasing for about 100 years with the exception of the years 1978 to 1980, known as the “diamond rush”. There is no other investment form that is so stable as diamonds.

There is no remaining risk with diamonds. Currencies, resources, real estate, securities have all a certain amount of remaining risks. Theoretically a world war could devalue any currency, real estate can loose its value, new technologies can replace resources, competition can ruin companies, but nothing can change the price of diamonds. Most potential diamond mines are known and with time diamonds will become rare as any natural resource will.

Diamonds are - together with quality artworks - one of the goods that combine the use of the diamond with its investment aspect. You can wear your diamonds as jewelry and at the same time they are your best investments.

Diamonds don’t loose their value. Most of the other luxurious goods, such as cars, furniture, furs, etc loose their value over time.