WHY SHOULD YOU INVEST IN A DIAMOND

Invest in diamondsfinancial diamond means temporarily shelve in a small movable property, that portion of savings that will not be used for the next 5/10 years, for defend it from inflation and devaluation, political influences, natural and human disasters. It also means eliminating all speculative temptations, guaranteeing oneself a sort of enjoyable life insurance (while continuing to live), and guaranteeing children and grandchildren a non-taxable and anonymous capital. An investment in Diamonds is ideal for those who want to feel comfortable. Indeed:

  1. Has the most high value per unit of volume.
  2. Has a relatively stable value and with a tendency to one fairly constant growth. Indeed, its listing is expected to increase naturally, also due to the progressive drop in production. From the post-war period to the present the diamond market has had just a single inflection in the eighties. For the rest of the period diamonds have always had growth which over the past 15 years has averaged 1.5-2% above inflation. Certainly the crises in some European countries, the fall in shares of international stock exchanges, and the crisis in government bonds, can only bring the investor closer to safe haven assets. And perhaps, alongside a speculative interest, a strong interest in shelter a part of your family heritage.
  3. It's a very rare and highly prestigious asset and has the characteristic of being able to be "enjoyed" in the period of possession.
  4. It is not subject to political-currency influences. Rather, during financial market crises, everyone hunts for safe-haven assets. The diamond market is still on guided by oligopolistic logic, in the sense that few subjects in the world manage to keep the market in constant tension by managing to ensure an ever-increasing price level. A feature that makes the diamond an excellent safe haven while other forms of investment, such as securities, gold, real estate, show some signs of abating.
  5. È transportable and liquidable all over the world, even in the most difficult political and social situations. It allows to touch your savings yourself and therefore to keep them under control at all times. it is the safe haven par excellence. The luck of diamonds also comes from them small size respected the high value: this and the easy concealability have favored the transport in dramatic historical moments during which other investment assets such as houses or paintings were not transportable and therefore easily confiscated. A diamond, it is a bearer investment that can be transferred and resold all over the world, provided that it is always accompanied by an international guarantee certificate. An important guarantee for your own and your family's safety.
  6. When it is accompanied by an authoritative certificate, it is listed internationally and its value is quoted weekly on the international price list Rapaport Diamond Report, which collects the prices recorded in the main diamond exchanges in the world. Its indicative value is also easily verifiable by the investor by consulting the table published in Il Sole 24 ore by the Italian Diamond Exchange.
  7. È a free movement good subject to VAT; easy to store and transport, not perishable and requires no maintenance; it is not subject to taxation on capital gains or inheritance. No entry or exit fees, no annual fees. It guarantees peace and security even in the most precarious situations.
  8. It is an iethical investment. Davisgioielli offers only "Conflict Free" diamonds, that is purchased from legitimate sources not involved in the financing of conflicts, and in compliance with United Nations resolutions.

 

WHAT ARE FINANCIAL DIAMONDS?

financial diamonds they are investment diamonds that are not purchased embedded in jewelry but only blister certificates and often with laser engraving.

THE STABILITY OF THE QUOTATIONS

WHY DOES THE PRICE OF DIAMONDS GROW IN NORMAL PERIODS AND RESIST IN WORLD CRISIS PERIODS?

Il diamond market still dominated by oligopolistic logics, in the sense that few subjects manage to keep the market in constant tension managing to ensure a level of continuously growing prices. A feature that makes the diamond an exceptional safe haven while other forms of investment, such as securities, gold, real estate, show some signs of abating. In 2015, the diamond industry had a turnover of $ 80 billion. The protagonists are De Beers e Alrosa, respectively with value shares of 40% and 25%; follow, the Indian Rosy Blue and Anglo-Australian Bhp Billiton, the rest are missing among other manufacturers. These manufacturers guarantee substantial stability of the diamond market and a "controlled" trend in quotations, which is still growing for now. Until a few years ago De Beers (through its sales and commercial promotion branch the DTC Diamond Trading Company which descends from the extinct Central Selling Organisation) even controlled 90% of the market: absolute monopoly. After the emergence of the Russians from Alrosa and other mining companies, its share fell but the methods remained the same. The quantity of rough diamonds to be transferred to processing is graduated according to the market trend, therefore, even in periods of severe depression, the quotations of stones in the industrial sector can remain unchanged, without undergoing declines. With these premises, it is easy to understand how the price is supported by causing that the price of diamonds from 1984 to today it grew steadily confirming itself as a safe and reliable investment.

 

THE MARKET

It is a particular market, in which the "exchanges" are headquarters of private contracts but there are no exchange prices between the seller and the final consumer. This means that the stock exchange lists establish indicative prices only within the diamond stock exchanges.

 

IS THIS THE RIGHT TIME TO INVEST IN DIAMONDS?

It seems so! The diamond market in fact suffered a slowdown in 2008 due to the crisis that hit many sectors of the economy; Since 2016 the price lists have been growing. However this sector has paid for an emotional reaction from the market to the world crisis. In fact, many investors have lost large percentages of their savings on the stock exchange in just a few days so they tried to instinctively protect the remaining capital; instead, right now, the need for savings protection is bringing the investor closer to the diamond market.

 

IN THE LIGHT OF THE CURRENT SITUATION IN THE WORLD, WHAT WILL THE TREND OF THE MARKET BE IN THE NEXT YEARS?

The value of diamonds has grown year by year to fairly constant values. For the first time, in the light of the events of 2008 that shocked the economy of the entire planet, diamond prices have stopped. This hasn't happened since the 1975 oil crisis. In the period between October 2008 and March 2009, demand slowed down, so De Beers has reduced production (decreasing the mining activity of the mines), while Alrosa preferred to store the extracted stones. This led to a balance with prices that remained low. Then from December 2010 the market started to move and the price of diamonds has started to rise again almost constantly until the beginning of 2014. Then between the end of 2014 and 2015 the value of the euro collapsed against the US dollar and the price of diamonds fluctuated in the sense that some measures fell slightly in price others, the more requested and rarer ones have increased.

 

HOW DO YOU ESTABLISH WHERE TO BUY AND WHAT IS THE RIGHT PRICE FOR A DIAMOND?

The first aspect of the purchase is the seriousness and professionalism of the selling company; trust in those who offer us an investment is the first rule; it follows that this company must place trust well by offering stones certified by esteemed laboratories and recognized worldwide; the proposed investment must then relate to easily resellable stones in the sense that, in times of need, the investor can quickly monetize; moreover the investment is such if the purchase price is in line with the market (a comparison of prices with the same characteristics allows to identify the most competitive company). In summary, we can conclude that the "goodness" of the investment is entrusted to the seriousness of the company from which it was bought.

 

WHAT TO CHOOSE AND HOW MUCH TO INVEST

First choose diamonds with particular and well-defined characteristics. We remind you that 80% of the diamonds extracted are used industrially. Only 20% is gem cut. Of this only 1-1,5% has the characteristics of the investment diamond. IS a medium-long term investment. However not less than five years considered that the trend in the price of diamonds is slow and gradual. In fact, by its nature it is not a speculative investment. In this sense we speak precisely of savings protection, a very current topic in this moment of international crisis. And precisely in these situations of economic situation it is registering an increase in interest in safe haven assets. Average recommended not to exceed 10% of the assets. Indeed, diversifying the investment portfolio means allocate your resources more safely and profitable.

 

WITH REGARD TO 4C, WHAT CHARACTERISTICS SHOULD THE INVESTMENT DIAMOND HAVE?

Recommended choose a color between F (very fine white) and G (fine white). This because the higher you go, the more the market segment decreases of a possible relocation. On the contrary, going down under the color I, the nuances are already perceived with the naked eye.

Purity: only the maximum level of purity IF (internally flawless).

Cutting: for good investment the most classic cut is used: round brilliant cut. It is also important that the quality and proportions of the cut respect the international criteria established by gemological laboratories.

Weight :: For those who want to invest in diamonds we recommend choosing stones between half a carat and two carats in order to easily obtain a divestment. When faced with important investments, we recommend choose more diamonds with these characteristics rather than just one for the whole amount. In case of need, only part of the stones can be sold.

Price: A tip is from do not go beyond 15-20 thousand euros of value for a single stone.

  • Certificate: the diamond must be accompanied by gemological analysis issued by esteemed laboratories e recognized worldwide, so that it is assigned an exact qualification and consequently a certain commercial value.

 

GEMMOLOGICAL LABORATORIES: THOSE WHO HAVE A VOICE IN CHAPTER

For those who decide to invest in diamonds it is crucial to know from which gemological laboratory the diamond has been certified. Diamonds with certification issued by internationally recognized laboratories guarantee one trafficability and resale worldwide. The certificate is used for identify the stone at any time, it contains all the qualitative parameters (purity, color, cut and weight) and identification of the stone which contribute to determining the price at any time. The most important gemological laboratories I'm:

  • HRD. (Hoge Raad voor Diamant or Diamond High Council)
  • Antwerp laboratory authoritative e estimated at European and world level. Certify all carats and seal stones.
  • ALREADY (Gemological Institute of America), is the best known American laboratory. Analyze the stone mark the certificate number on the belt and do not seal.
  • IGI (International Gemological Institute - Antwerp and New York), Gemological analysis laboratory with main offices in Antwerp and New York. It seals the stones and does not set limits of carat weight.

 

DOES THE GEMMOLOGICAL CERTIFICATE INCREASE THE VALUE OF THE STONE?

No, but protects the consumer since confirms the authenticity and specific characteristics of stone; consequently it can be considered in itself a valuable document. Therefore, if the certificate was issued by an internationally recognized independent gemological institute, this facilitates and allows the attribution of a right evaluation wherever you are in the world.