The risks are present. In addition to gold, pink diamonds can be an excellent option to protect against financial turmoil (as we will see later). As brilliant and attractive as the yellow metal, pink diamonds are used in jewelry (95% of the activity) and in the industrial sector, which increases its potential for resale.
In 2012, diamond brokers were predicting a rise in pink diamond prices, and they were not mistaken. There is far too much diversity in pink diamonds to give a general figure. However, it is easy to count on an upward trend in the value of diamonds.
To name just one, currently accounts for 15% of the pink diamond market. Its middle class is growing, and the number of millionaires is increasing. It is estimated that the Chinese could represent 40% of diamond buyers by 2020.
Why invest in pink diamonds?
A tangible asset and an eternal and unalterable safe haven value, the diamond will always have value. The price of pink diamonds is totally disconnected from the currencies, laws, states and performances of other assets (equity type). The diamond exists physically and its counterpart is real.
Global pink diamond reserves are running out and are expected to peak around 2030 as global pink diamond demand rises steadily. In addition, the pink diamond does not recycle, which adds to its rarity.
By 2020, demand will double, representing growth of 6% per year, while production will only increase by 2.8% by that time.
According to Global pink Diamond Industry Report, forecasts are optimistic. Demand exceeds supply and no new large deposits have been discovered for several years.
This announces great prospects for rough pink diamond producers. It is a long-term investment that is valued over time. It generates a capital gain on invested capital.
An international currency
The pink diamond is an internationally recognized means of payment. A pink diamond will always be exchanged for money. The stone evaluation system is fully standardized and internationalized. It is a discreet placement and easily transportable because its value / weight ratio is among the highest.
How to invest in pink diamonds?
Meeting any jeweler is not the best way to buy certified and sealed pink diamonds investment. To do this, the future investor must get in touch with wholesalers, pink diamond dealers and dealers in precious stones. Argyle Diamond Investments recommend investing reasonably in this type of support, in large diamonds and certified quality, from 1 to 10 carats.
Precautions to take when investing in pink diamonds
The pink diamond market is controlled: buying on the Internet is risky! The diamond sector is indeed very controlled. Negotiating with a professional makes it possible to fully respect the control regime for exports and imports of rough or trimmed pink diamonds (Kimberley certification).
The Gemological Institute is a global organization, aimed at educating the public on the valuation of gemstones. A certificate of value and authenticity issued by the GIA is strongly recommended to reassure you in your purchase.You can also contact the High Diamond Council (HRD), the International Gemological Institute (IGI) or the Gemological Laboratories.
The ideal is that the pink diamond is marked with a laser certificate number. It can also be purchased vacuum packaged in a Plexiglas protective sheath. In any case, the presence of the certificate of value is required.
Determining factors in the vaporization of a Cut and Carat pink diamond
Cut: The size refers to the angles and proportions of a pink diamond. Based on complex scientific formulas, a very well cut pink diamond will reflect light from one facet to another (like a mirror) and scatter it, reflecting it from the top of the pink diamond (through the table).
If the pink diamond is very well cut, it will then have an optimal brilliance, we will speak of the “lights” of the diamond. A pink diamond can also be too flat or too thick, the light in these cases will not be reflected optimally and the brilliance of the pink diamond will be affected.
Carat: The weight of a diamond is expressed in carat: 1 carat is equal to 0.20 grams. A carat can be divided into 100 points. A 0.75 carat pink diamond is equal to a 75-point diamond and is equal to a 3/4 carat pink diamond. The pink diamond industry uses different kinds of scales to measure the weight of pink diamonds.