Buying loose diamonds? A worthwhile investment!

The demand and therefore the value of loose diamonds is rising!

Although gold is still one of the more popular investments, we’ve noticed a renewed interest in loose diamonds for investment in recent years.

The most recent study by De Beers (Diamond Insight Report by De Beers 2020) shows that Indian investors are among the largest buyers of loose diamonds in the world. India’s growing economy and strong population growth are leading to an increased demand for gems and thus loose diamonds. It’s even expected that global demand for diamonds will exceed the available supply.

The outlook for loose diamonds for investment is very positive, but there are some important points that you need to consider when buying loose diamonds. Despite the usual certificates, trading loose diamonds is not always straightforward.

The price of loose diamonds

When considering buying loose diamonds, it’s best to do so when you have sufficient knowledge and experience to estimate their value or when you have the support of a specialist in this field. Even if loose diamonds come with the necessary certificates and official valuation, you need to negotiate the final purchase price as a potential investor. Any negotiation strategy for loose diamonds should be determined based on the 4 Cs: cut, clarity, colour, and carat. These parameters determine the final value of the diamond. Again, we advise you to consult a specialist you trust.

Buy-back value of a loose diamond

In addition to the purchase price, defining the potential repurchase price (buy-back value) of loose diamonds is also a challenge! The repurchase price will vary from merchant to merchant. In an ideal situation, you would recover 95% of the current market value. For smaller loose diamonds, it will generally be less. It’s important that you negotiate this buy-back price before you purchase the loose diamond.

If you want more information about loose diamonds for investment, contact our specialised team


Author: Alexander Schmitt
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.


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