- Commodity prices usually decrease during an economic downturn
- Those who did not experience financial turmoil turned to buying loose diamonds
- It is expected, that diamonds will increase in value the following years
Many countries have experienced a dark period on the economic front. In these uncertain days, people wanted to protect their assets. For this reason, some people invested in commodities, because these are easy to resell in times of need. To buy loose diamonds is only an example of investments in commodities. It is, however, a very popular one. This is because the value of a diamond mostly remains stable during crisis.
During an economic downturn, commodity prices usually decrease. Diamonds seem to have the opposite reaction. The yellow Vivid diamonds, for example, have doubled in value. To give you an idea: in 2015 the ‘Graff Vivid Yellow’ diamond was sold for nothing less than 16 million USD at Sotheby’s. To buy loose diamonds is a worthwhile investment!
With the increasing prosperity of the middle class all over the world, more and more people have the opportunity to start investing. Countries as Brazil, Russia, India and China did not suffer from the same financial crisis as the one felt in the West. As investors, they turned to buying loose diamonds, which made the diamond value continued to rise.
Moreover, some of world’s largest diamond mines closed, making expensive diamonds harder to obtain. It was still possible to buy loose diamonds, but a slight shortage arose. This fact also contributes to the stability and growth of the value of the investment diamond. People came to realise that, as a long term investment, to buy loose diamonds definitely pays off.
It is expected that diamonds will increase in value the following years. The shortage and rarity will only benefit this. Would you like to buy loose diamonds yourself? Prevent some common mistakes when investing in diamonds and contact the BNT Diamonds experts.