How to Invest Smartly in Diamonds | BNT Diamonds
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What are smart investment techniques?

When you start investing, you aim to earn a nice profit after a certain time. Therefore, it is critical to know which strategies you should use to invest as wisely as possible. The diamond experts at BNT Diamonds have given you some tips below.

How do I research my ideal investments?

First of all, look at which capital you want to integrate into your investment portfolio. It is important to set aside a fixed sum as a buffer for when you need liquid assets. Quickly liquidating your investments can often lead to losses. A buffer ensures that you are not forced to do so.

Secondly, 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 investing in a way that is smart for you.

Finally, determine when you expect returns and what your final goal is. Large long-term investments require a very different approach to smaller shorter-term investments.

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Why should I spread my portfolio?

Properly spreading your portfolio is a popular technique used by smart investors to withstand any changes in the global market and their possible 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. But, of course, spreading their portfolios too thin also comes with its risks.

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

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

“I ​​have never regretted buying diamonds... They’re a great investment.”

Warren Buffet

What makes investing in commodities attractive?

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

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

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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 method of smart investment. In addition, you can have them set into elegant diamond jewellery, providing even more added value.

If you want to learn more about how to invest smartly and the best investing strategies for you, consult the diamond experts at BNT Diamonds or speak to our team at +32 3 201 24 90.

Why invest in Diamonds?

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