What are smart investment techniques?

When you start investing, you aim to realize a nice profit after a certain time. It is important to know which techniques you can best apply to invest as smartly as possible. The diamond experts at BNT Diamonds give you some tips.

How do I research my ideal investments?

First of all, you do research. You look at which capital you wish to integrate into your investment portfolio. It is important to set aside a fixed sum as a buffer for when you need liquid assets. If you quickly need to liquidise your investments, this often ends in losses. A buffer ensures that you are not forced to do so.

As a second step, you determine your investor’s profile. Knowing how much risk you are prepared to take and how much effort you wish to put in following up your investments, is crucial for deciding the right investments and for investing in a way that is smart for you.

Finally, you determine on which term you expect returns and what your final goal is. Large investments on the long term require a very different approach from smaller investments on a shorter term.

Why should I spread my portfolio?

Properly spreading your portfolio is a popular technique under smart investors that allows them to withstand all the changes on the global market and their possibly negative consequences. Effectively, investors tend to look for investment methods that are not related to each other. Their objective is to limit unsystematic risks and increase the returns of the total portfolio. Of course, too much spreading also comes with its risks.

So-called alternative asset classes are popular solutions for investors trying to spread their portfolio. In the current theories regarding smart investing, alternative investments such as real estate always play an important role.

But the economic landscape keeps changing. As a result, investors continuously have to look for new possibilities. One of the alternative forms of assets that has become more appealing in recent years is the category ‘commodities’.

"I ​​have never regretted buying diamonds ... they are a good investment."

Warren Buffet

What makes investing in commodities interesting?

Commodities fall under the group of alternative asset classes. They are appealing for institutional investors in many ways.

Commodities are subdivided into various large categories (such as energy, agriculture, livestock and metals) which are, in turn, comprised of numerous commodities, such as crude oil, natural gas, aluminium, copper, gold or diamond.

During times of economic difficulty, the following spread of investment is generally considered optimal:

-1/3 real estate
-1/3 fixed-interest securities
-1/3 movable assets or commodities such as diamonds

It is wise to spread out your investment portfolio rather than sticking to a single investment method. Buying commodities like diamonds perfectly fits this way of smart investment. In addition, you can also have them set into elegant diamond jewellery, giving even more extra added value.

Which type of diamonds have a high chance on a high return on investment? Be sure to consult the diamond experts of BNT Diamonds or speak to our team personally at +32 3 201 24 90.

More information Why invest in Diamonds?