Investing in Diamonds: Opportunities and Considerations

The risk profile of the investment is quite low with stable and consistent returns over time that require an initial period to absorb the costs of the investment which are only incurred when purchasing the stones, a physical asset that does not wear out with use.

Diamonds, especially if associated with gold, are excellent tools to diversify your portfolio and, since they are not registered assets like cars and real estate and do not have any tax on possession or income, they allow for greater fiscal peace of mind. Furthermore, diamonds do not deteriorate and do not lose value if used, so as part of a well-designed diversification plan, even a few diamonds set in jewelry are a good investment that can also be enjoyed for the possibility of being worn.

We offer a complete consultancy service, from evaluating the client's profile to selecting the type of stone or lot of stones to buy. We always provide two clear figures: our commission and the actual cost of the stone; allowing you to evaluate every aspect of the investment. We also offer advice on whether the stone should be part of a piece of jewelry or simply kept loose only for future resale.

If you want to buy an investment diamond and also want to mount it on a piece of jewelry, you add gold investment to the diamond investment, albeit to a much lesser extent and value.

Investment diamonds can also be used to create stunning jewelry, making it possible for a financial investment to become an enjoyable asset, as these gems do not lose value with use thanks to their specific properties. Being private goods rather than financial instruments, diamonds, like other objects, are taxed at the time of purchase with value-added tax and do not have management or maintenance costs like cars and apartments. When sold, there is no capital gains tax, and they make excellent assets to pass on to future generations as there is no obligation to declare them in the estate or pay inheritance tax.

An investment in a few high-value stones could generate excellent returns, as in recent years, diamonds weighing 2ct. or more have appreciated more than others. On the other hand, they are less quickly liquidable, and there's a greater risk of not getting the expected price if you're in a hurry, compared to multiple smaller stones.

Whether you choose loose stones or diamonds mounted in jewelry, there remains the issue of storing these physical assets, a problem shared with physical gold. However, distinctions must be made between loose and mounted diamonds, as the former, if kept in a safety deposit box, pose no problem since there’s no reason to remove them unless they need to be sold, while the latter, if hidden in a vault, may not be worn frequently. Therefore, it's important to carefully weigh the type and value of the investment and the frequency and actual use you wish to make of it.

Smaller stones are generally not considered a real financial investment due to the greater availability of stones on the market and because the gains of operators selling and buying stones may limit your future earnings. Larger stones over two carats, fancy shapes, or colored stones are unique investments, often less liquid due to their extreme peculiarity, which might have difficulty finding a receptive market quickly.

Also, read our diamond guide to learn more.