Investing in Diamonds – 2023

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You might be looking to invest money in something that will help to provide you with a return in years to come and, perhaps you’ve considered the idea of diamonds but aren’t sure if they are a good idea. If you ask anybody in the business of investments and ask them which investments are likely to withstand the hands of time, property, gold and stones will probably be the first things that they suggest.

Making Sure Your Investment is Sound

Diamonds appear to be a terrific investment choice, on paper, at least, they appear to have stood up to the hands of time in a similar way to that of gold and property, which have, of course, increased in value almost continuously over the years. On that basis, it should be an easy choice to make surely. The thing is though, with diamonds they they aren’t quite as easy to value when compared with other long-term opportunities.

Mainly because it’s not just the weight that needs to be taken into consideration, you have to consider weight, purity, clarity, shape and colour, when buying things like diamond earrings, or such like Also, appreciating the fact that there is no ‘universal price’ for diamonds per gram like there is with something like gold. So, regardless of whether you invest, or not you should always see a professional advisor/valuer before making any kind of decision.

Don’t Pay Too Much  

‘Buy low, sell high’ is a wise maxim to follow when making an investment in anything but, it’s more difficult than it may seem to “buy low” when it comes to diamonds. First of all, there is tax, which, you will immediately lose anything up to 20%, or more of your investment depending upon where you buy from. The best option would be to purchase from an area, or Country that is exempt from VAT charges.

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That way at least, you would get the first, and the most expensive ‘profit killers’ out of the way whether you buy from a non-VAT area, a private seller, or through a VAT-registered firm, the saving will make or break the idea of investing in diamonds with a view of making any money!

Don’t Expect Too Much

To be fair, it’s hard to know what to expect, especially when you don’t know what you’re looking for, this does however mean that your self-care surrounding your expectations is super important. Try to remain realistic and level-headed around your investment as possible. As with any commodity, diamonds can experience both increases and decreases in value, certainly if prior performance is taken into consideration.

Ups and downs are to be expected, however, they should, generally increase over time, albeit very, very slowly. Therefor, as an investment, diamonds should be viewed as a very long-term investment which will require a certain level of commitment and a fair amount of patience too!

Don’t invest with a plan in place for how long you’ll keep your money tied up, it just doesn’t work like that with diamonds based on the number of variables involved with their valuations.

Take Your Time 

No matter what you’re considering putting money into, long term, or short term, it’s normally wise not to rush into things and to consider all of your options first. Primarily, property is still deemed to be the soundest investment that a person could make based on its ability to maintain an almost ever-growing increase in value over the years. 

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Always consider all your options and make sure to seek the advice of an investment specialist in whichever areas you are considering. only then can you make any kind of real headway in terms of making a final decision, and hopefully one that you will be pleased with.