Diamonds are a unique asset class with unique benefits

Click on the images below to see how diamonds compare to more traditional investments like gold, property and shares.

  • Retain value in times of crisis
  • Protects against inflation
  • Highly portable
  • Increasing demand, falling supply
  • Historic price growth with low volatility
  • Only 2-3% of stones have investment potential

  • Huge range of markets and providers
  • Spread bet profits are tax free
  • 82% of trading clients lost money
  • 89% of managers don’t beat the market
  • Losses can quickly exceed initial deposit
  • Extremely high risk and unpredictable

  • Retain value in times of crisis
  • Protects against inflation
  • Tangible, physical asset
  • High price volatility
  • Priced in US dollars, so has currency risk
  • Expensive to store

  • Physical, tangible asset
  • Can generate an income
  • High entry and exit costs
  • Prohibitive taxes for investors
  • Interest rates likely to rise
  • Ongoing maintenance costs

Diamond Investment

The global economy has endured many ups and downs over the last decade. Central Banks appear increasingly incompetent and the economy is awash with printed money and record levels of debt. People are looking for real alternatives to traditional investments, many of which appear over valued.

During these times we appreciate the advantages of physical, tangible assets and this explains the demand for assets like gold, silver, art, classic cars and diamonds.

The use of diamonds as an investment and financial hedging tool has grown rapidly over the last few years.

The reasons are simple:

Watch our short video to find out more

Portable and Durable

Diamonds have been used as a means of wealth transfer for thousands of years. The fact that such a small item can be worth so much is astounding. You can easily keep a £1m diamond in the smallest of safes, a jacket pocket or around your finger if you are brave enough.

As the hardest substance on earth, diamonds will not age. Just make sure you store it securely and do not lose the certificate.

Since diamonds do not wear out, there is no stigma in selling a ‘second hand’ stone. If you wish to enjoy wearing your investment, we can help you with that too.

Diamonds are physical, they exist. You can hold them, look at them and even wear them, in contrast to stocks and other financial products which are merely rows of numbers on a computer screen.

How to Invest in Diamonds?

Diamond investment should make up a portion of your investment portfolio, not all of it. Many of our clients choose to invest between 10% – 20% of their available risk capital into diamonds, but it is entirely up to you.

Is there a minimum amount I should invest?

You can buy a diamond for £50 or £500 but these stones are not likely to offer much investment potential as these stones will be of poor quality and uncertified. Client budgets range from £5,000 to several million pounds.

Whatever your budget, you should consider buying several stones rather than just one. We recommend against buying several diamonds of the same cut, colour or shape.

Compare Prices

Every diamond is unique but that does not mean you can’t check you are paying a fair price. If a diamond is similar in size, cut, clarity and colour to another, it should be priced similarly, although there are a few exceptions to this rule. We check our prices daily and will refund the difference if you can buy a similar quality stone elsewhere for less. We are incentivised to find the best stones for your budget.

We conducted an interesting experiment with some of the best known jewellers in the UK. The results may surprise you, read about it here.

There is little point in buying something that is plentiful. By the same token, a heart shaped, 6 carat, D colour, VVS1 clarity diamond will make a truly beautiful necklace but the market for such a stone is tiny. You need a slightly different mind set for successful investment and should be looking to buy the stones that are in demand but not too plentiful.

GIA Certification

We only supply certified diamonds. A variance in a diamond’s attributes could mean a substantial change in its value or desirability so we focus on diamonds certified by the GIA. This is the most respected and strictest gemmological laboratory in the world, you can find out more here.

When selling your diamonds, a buyer will be reassured by a GIA grading report over any other.

Selling

When the time comes to sell your diamonds, we will help you achieve the highest price for your stones. We can offer them back to the market directly on your behalf or we may buy them back from you instead.

Conflict Diamonds

The term ‘blood diamonds’ or ‘conflict diamonds’ refers to diamonds that are sold through illegal channels to fund conflicts in the war torn countries of Africa.

These diamonds were at the heart of much bloodshed in West Africa during the civil wars of the 1990’s.

The Kimberly Process Certification Scheme, known as KPCS, is a process set up by the United Nations General Assembly Resolution 55/56. It is designed to certify the origin of rough diamonds from sources which are free of conflict driven by diamond production. The World Diamond Council created a system for diamonds that has been endorsed by all KPSC participants.

London Diamonds has never, and will never deal in these diamonds.

If you have questions on any aspect of diamond investment, we would be delighted to assist you. Please call or email our team.

We look forward to hearing from you.

Investment Edge Blog