What to keep in mind when investing in diamonds? | BNT Diamonds
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What to keep in mind when investing in diamonds?

15 Jul 21

Diamonds have gained more popularity with investors than gold. A report released by De Beers, a large diamond company that has an almost-world monopoly on diamond, showed that the Indians are the largest group of buyers. It is very popular to buy diamonds as an investment. But there are a couple parameters that you have to keep in mind before you buy diamonds yourself.

The economy in India has grown significantly, which also increases demand for luxury products. In India, deciding to buy diamonds is thus a logical consequence of the favourable economic climate. They see a diamond more as decoration then as an investment. And although at the same time the demand declined in China, the prospects remain positive. Buying raw materials, such as diamonds, as an investment remains a smart move from which you will benefit in the long run.

It must be clear that when you buy diamonds, you have to pay attention to the global economy, especially for the price of diamonds. In addition, the political climate is also closely linked to this. Even the election of Trump affects the price of diamonds.

In spite of the certification process, it is still more difficult to buy diamonds than gold. Financial advisers therefore recommend you to only start to buy diamonds if you have the necessary know-how. You should focus in particular on the importance of the 4 C's and how the price of diamonds is determined.

Although it is recommended to buy diamonds as an investment if you have the necessary knowledge, the lack of price transparency is the other side of the investment medal. This is certainly more evident with gold. Fortunately, hard work was done so that a favourable investment climate could be created for diamonds. The certification system of independent laboratories, such as GIA, played a big role here. The confidence of the investors grew, which again stimulated the demand for diamonds.

Given the many parameters that you must pay attention to before you buy diamonds yourself, it is advisable to solicit a partner who has both technical, financial and market knowledge. In addition, it is wise to diversify your investment portfolio.

Would you like to buy diamonds? Find the perfect diamond and request a price offer or contact the experts of BNT Diamonds.

Fabienne Rauw
About Fabienne Rauw
BNT Diamonds Antwerp

Fabienne, manager of the German market is able to guide every client with finding the right jewel. She takes care of most of the German orders, but also takes other task on her plate. Thanks to her six years of experience at BNT Diamonds she acquainted well with the product and the marketing around it. Her degree in PR ensures that BNT Diamonds is well presented across all media channels. For anyone looking into a new investment opportunity, Fabienne is the perfect guide in this process. No question will be left unanswered, and she will help you every step of the way.

With this article, BNT Diamonds 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.