LeiserDiamonds_Zertifikate-GIA-Tisch

Why to invest in diamonds?

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Diamonds are undoubtedly the oldest, hardest and, in the long term, the most stable investment on the market. Diamonds are also known as “the currency of the Jews”.

WHY DOESN'T MY BANK OFFER ME AN INVESTMENT IN DIAMONDS?
FOR THIS REASON: IT CAN'T!

Banks are only interested in retaining as much capital as possible. They naturally give their own investment products the advantage in sales and marketing.

Investing in “very very rare” diamonds enables continuous growth in value over the long term. Diamonds are therefore not suitable for speculators. Naturally, the investor receives Swiss custody account management from our company in order to meet individual needs.

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First-class diamonds have gained a firm place among investors. Tangible assets, such as a natural fancy pink diamond or a work of art by Picasso, may not provide an ongoing income, but their value tends to increase or remain stable over the long term. Historically, private market investments have significantly outperformed exchange-traded investments and have always carried less risk because they can be purchased physically. Diamonds are traded worldwide in US$. They are therefore backed internationally by monetary value.

On the one hand, it is the knowledge of the stability of value in combination with the aesthetics of these stones that allows investors to secure their portfolio with natural diamonds; on the other hand, investors see natural diamonds as the ideal and stable asset that can be passed on from generation to generation without any complications. The forecast that the majority of important diamond mines will be exhausted in around 60 years reinforces the idea of paying close attention to natural diamonds.

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GREATEST VALUE IN THE SMALLEST SPACE

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5.00 carat/ct. Diamond weighs only 1 gram and therefore has an incredibly large value in a very small space. To understand the enormous difference in value and weight, compare natural diamonds with 999 investment gold, compare 1 gram of gold, currently worth US$ 79.00, with 1 gram of flawless investment diamonds, currently worth US$ 520,000. This is not the only reason why physical diamonds should always be considered as a tangible investment.

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QUALITY IS VALUABLE

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Of course, diamonds are available in different qualities, colors and cuts. The quality of a diamond is checked under a Diamantaire loupe with 10x magnification. Their rarity, due to the limited natural resources of rough diamonds, gives them a particularly high stability of value. The quality of a diamond is noted in the corresponding certificate (GIA / HRD / IGI).

The 4C's determine: Carat (weight), Clarity (purity), Color (color) and Cut (cut). These factors are decisive for their attractiveness as an investment.

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FANCY COLOR Diamonds

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The fact that there is only one fancy color diamond for every 10,000 diamonds illustrates the rarity of these special diamonds. While most diamonds are colorless or lightly colored, fancy color diamonds are created by special chemical and physical conditions that produce their natural colors. This rarity makes them coveted collector's items and investment objects, which significantly increases their market value. The variety of colors, from intense blue to radiant yellow, as well as the uniqueness of each individual stone also contribute to their fascination.

The Argyle mine in Australia, one of the largest producers of fancy color diamonds until the end of 2020, began to reduce its production capacity back in the 1990s. Dwindling supplies contributed to the rarity and thus the price increase. At the same time, the market for alternative forms of investment was growing and investors were looking for new opportunities to invest in commodities. Fancy color diamonds were seen as an attractive option that offered both aesthetic and financial value.

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Argyle Diamonds

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Argyle diamonds are exceptional and fascinating for several reasons. First of all, they come from the legendary Argyle mine in Australia, which was the main source of colored diamonds for over three decades, especially the coveted pink, red and purple diamonds. Not only was this mine the largest of its kind, but it was also renowned for the incredible variety and intensity of its hues. The Argyle mine presented the world with the challenge that around 90% of the world's pink diamonds came from this single source.

The closure of the Argyle mine in 2020 has dramatically reduced the availability of these unique diamonds, further increasing their value and desirability. Collectors and investors are aware that stocks of Argyle diamonds are limited, making them a valuable and potentially value-enhancing investment. The rarity of these stones is further enhanced by the fact that many of them occur in small sizes, making the search for larger specimens even more exciting. Argyle diamonds are prized not only for their stunning colors and rarity, but also for their fascinating origins and the significance they hold for the world of gemstones. They are a symbol of luxury, rarity and the everlasting beauty of nature.

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TRENDS IN FANCY DIAMONDS

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Over the past decades, the prices of natural fancy color diamonds have recorded constant increases, making them one of the most stable forms of investment. For example, the price of blue diamonds has risen by 241% and pink diamonds by 366% since 2005, without any major corrections during this time.

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diamond market

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Diamonds are traded all over the world. The largest exchanges are located in Antwerp, New York, Ramat Gan, Israel, Dubai, New York, Hong Kong and Mumbai. The four exchanges in Antwerp are the most important in the world. Most of the global diamond trade is conducted by a company known as “DeBeers”. DeBeers occupies a leading position in the global market thanks to a large number of affiliated companies from various areas of the diamond business.

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All rough diamonds are delivered to the DTC (Diamond Trading Company) in Botswana, from where they are sold at certain intervals at the so-called “sights”, which are sales events at which De Beers and other producers offer their rough diamonds to the 69 approved sightholders. These sightholders are the buyers for the cutters and wholesalers.

The rough stones are then cut and polished in the manufactories to maximize their brilliance and beauty. After subsequent certification by one of the recognized institutes (GIA, IGI, HRD), the cut diamonds are offered to jewellers or service providers, such as Welcome Future AG.

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