How and where can I purchase raw diamonds? | BNT Diamonds
Raw diamonds

Should I purchase raw diamonds as an investment?

30 Aug 21

In a diamond mine, just a few carats of diamonds are acquired from several tonnes of rock. They are still unprocessed, and look rather cloudy or crystalline, like broke ice cubes, and still have a long way to go before a sparkling gem can be produced from the raw stone. Find out all you need to know about raw diamonds and their purchase.

Discover our selection of raw investment diamonds

Rough diamond

Where can I buy raw diamonds?

The global diamond industry is an almost closed universe, from the mines, with their large operating companies that mine the precious stones, to the diamond bourses, where the raw diamonds and the finished, cut stones are traded, or the gemcutters, who transform the diamond into the jewel that can be used in jewellery or sold as an investment.

This is precisely where lies the problem when purchasing raw diamonds: within this system, which, away from the large mining corporations, is based on old traditions such as contracts based on handshakes, family or regional ties, and established logistics chains, end customers are not taken into consideration.

Private individuals have no access to a diamond bourse. You cannot simply go to a gemcutter with a raw diamond. To actually find someone who masters this art and is taking on private orders at a fair price is a challenge. The finished, cut diamonds also have to be certified, as a 4C certification increases the tradability and generates trust in the quality of the diamond.

The raw diamonds that are offered online in vast quantities, via various marketplaces and auction platforms, are almost exclusively poor-quality diamonds. They are suitable as collector’s items for mineral collectors, but have no actual value and are as such unsuitable as an investment.

Added to this is one crucial factor: the analysis of the quality of a raw diamond, how it can best be split and cut, requires years of experience or outrageously expensive technology. The value that actually lies in such a stone is infinitely more difficult to assess than with a cut diamond.

How is a cut precious stone made from the raw diamond?

Diamonds were produced millions of years ago, at great depth and under high levels of pressure and heat. The majority of them never see the light of day – only where diamonds reach the surface through kimberlite pipes, a type of express train for magma, can the diamonds be extracted.

From above, diamond mines look like gigantic snail shells, running into the earth in a spiral formation. The rock is extracted and crushed, and the diamonds are washed and pre-sorted by means of a special procedure. The stones that are suitable for jewellery manufacture are passed on to the diamond bourses via distributors, where they are sold and then cut by diamond cutters. These then pass directly to commercial sellers, or pass through the diamond bourse once again.

At the end of the chain is the jeweller or diamond trader, who offers the pieces of jewellery or the loose diamonds for sale. Depending on the provider, the precious stones will come directly from the source; from the gemcutters, or will pass through a network of intermediary distributors, which has a major influence on the price.

What do raw diamonds cost, and are they a good investment?

Depending on the size and quality, the price of raw diamonds can range from just a few euros up to several million, however, even in the case of average goods that fall nowhere near these extremes, there are considerable price differences. Without being cut and certified, the quality of raw diamonds cannot be determined as standard using the 4C method.

Initially, the purchase of raw diamonds may sound appealing - the idea of acquiring an uncut stone at an affordable price, like a finding a piece of treasure and hitting the jackpot. However, the reality looks different. You won’t find any raw diamonds on the market that has not already been thoroughly tests by experts and assigned a price in keeping with its worth. You will neither find a sensational bargain, nor multiple your invested money.

The disadvantages on the other hand, are more than apparent: purchasing raw diamonds is considerably more speculative than buying cut stones. The tradability in comparison to that of certified cut diamonds is less. The cost of having the stone professionally cut independently i so high in Europe that, ultimately, you will pay more than had you just purchased a cut diamond. Cutting also carries a slight risk: if stresses in the stone are not detected in advance, the diamond may shatter during cutting, and will be irreparably destroyed.

In conclusion: purchasing raw diamonds is risky business given that, for laypersons, the actual value is nigh on impossible to assess. If you are looking for a serious investment with much less risk and attractive return prospects, then the purchase of cut diamonds, with a certificate from a laboratory such as the GIA, is by far the better option.

Are you interested in purchasing 100% natural diamonds as an investment, at a very attractive price? The experts at BNT Diamonds would be happy to advise you. Contact us by email or Chat, or call our team directly on +32 3 201 24 90.

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.