Diamonds: A Manual to buy, sell or inherit

Diamonds: A Manual to buy, sell or inherit

November 15, 2020 Off By Joan Padilla

The world of gems is very complex and it is good to know some basic rules before entering it. Like gold or oil. Diamonds have always been an effective instrument of power

To the point that there is also a legend that it is an infallible investment. But beware! it is not always. To properly manage the value of the queen of all gems if you inherit, buy or sell one, you have to be not only well informed, but well informed. ” The world of diamonds is very complex for those who do not have a professional knowledge of the sector. Thinking of buying diamonds as an infallible investment is an almost historical mistake.

Two basic tips when you have (or aspire to have) diamonds in your hands. The first, that both to acquire and to sell you have to choose the place very well to deal with trusted professionals. And, economically, remember that, unlike gold, the purchase of diamonds is taxed with VAT, so from the outset “ buying them as an investment asset becomes difficult unless the objective is to invest in the long term. ”.

The minimums that you must demand

But let’s go step by step. The first thing to do is to choose the diamond, which must meet a certain minimum size and quality, and then determine its value. Regarding quality, the best, experts say, is to choose a stone that comes without a rim. 

Diamond is not the same as brilliant

This means that “in the case of a carat, we are talking about stones from 6.5 millimeters, whose initial price is 6,787 dollars if it is of high quality. ”

It also warns that a diamond is not the same as a brilliant, since the second meaning refers to the cut, which in addition to being brilliant can be pear, baguette … “But the best is always round or brilliant,” says who also recalls that “every diamond has a certificate of authenticity and, if not, one must be obtained from a gemological laboratory of repute.

There are also “rare” diamonds. For its extraordinary greatness; or because of its unusual color.

The brightness, purity, and size determine its price

Combining, then, the best of each scale is what will mark if the purchase, inheritance, or investment is good or not. “It will be optimal when choosing a river diamond of exceptional whiteness that does not show inclusions or blemishes”. And they add that ” size also matters “, referring to the way the piece has been carved, a chapter in which the experts give another very clear rule when investing: only brilliant or round cut is recommended. It is with these conditions of cut, purity, and brilliance (in addition to that minimum of one carat) that specialists speak of quality diamonds.

When to buy? And sell?

The price of the dollar is what marks the rises and falls in the price of diamonds, which, in general, do not usually lose value. But it must be remembered that the sector has also had its crises, such as the one it experienced in 1970 when its price dropped to 50% due to excess production. That is why it is important to get it right both when buying and selling.

Why is it good to wait?

One of the great advantages of diamonds is that “they do not involve maintenance costs like a piece of Haute Horlogerie, and that the proceeds from their sale are tax-free.” That is the reason why, in addition to not advising the purchase as an investment to those who want quick benefits, one must be patient and look for the optimal moment so that the purchase or sale is as beneficial as possible. A quality diamond never ceases to be a tangible asset that “can be safely kept at home to bequeath or sold as soon as necessary.

How much does your price go up annually?

The good news for those who have invested in these pieces is that, according to studies, mining production of these stones is slowly falling. And there are no major new mines from which to extract more to meet the demand, which continues to grow.

This has meant that “the prices of quality diamonds have increased an average of 5% per year, ” they announced that prices were expected to increase 6% per year until 2020.” Many of those looking for alternative savings assets have turned to diamonds have relied on Defined Value Diamonds (DVD) “an investment program that is easy to understand and accessible since everyone has access to him with the amount he can afford, which includes a range of prices ranging from $ 1,000 to $ 500,000. “

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