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Natural diamonds as value maintenance

Diamonds are not at all suitable for short-term investment strategies. They represent an optimal solution in terms of value retention. Diamonds consistently hold and increase their value. These values are redeemable worldwide and certification (GIA or HRD certificates) provides evidence of their uniqueness.

Historically speaking, diamonds have always been assets with a guarantee against total loss, particularly in periods of wealth erosion as a result of inflation and economic crisis.

Diamond prices have increased tenfold since 1960!

Statistics based on the Rapaport Price List show that the price of a high-quality 1-carat diamond can be expected to double every seven years or so. Historic price movement of diamonds in US dollars
(brilliant, 1 carat, colour D, clarity IF) based on Rapaport prices, New York)
The international benchmark prices for diamonds are calculated weekly. They serve the diamond trade as a general guideline and are published in the Rapaport List. This also means that there are internationally recognised and clearly defined values for diamonds.

What is the case for diamonds in terms of value maintenance?

    - Stable tangible asset
    - Increasing demand worldwide
    - Falling supply due to limited natural resources
    - Stability in financial crisis
    - Discrete asset value
    - Mobility due to maximum value density
    - Alternative to precious metal

In principle, the diamond market is very stable. Annual diamond production is approximately 140 million carats. According to a study by DeBeers, there will be a substantial fall in diamond output over the next 20 years as new diamond fields are no longer being opened up. The long-term chart index, which was initiated directly by DeBeers in order to project future price trends, confirms this:

It is expected that the demand for jewellery-grade and investment-grade diamonds will substantially outstrip supply over the coming years. This will lead to further significant increases in price and value.

What are the dynamics of prices?
Price movements in recent years show that the bigger and rarer the diamond, the more quickly its price rises in line with the worldwide shortage of diamonds. For investors, this means: "the higher the value of my investment, the more secure it is".

Value behaviour of classic investment diamonds in 100 US dollars per carat,
based on: Rapaport List from 2006 to May 2011, gz-online

It is a similar picture when choosing colour, clarity and cut. The top grades of diamond quality produce the biggest increase in value.