Diamonds as an investment

[nitros]

What's your feeling about to buy diamonds as an investment?

[crew]

It's very hard, if not impossible, for the average guy to make money on diamonds.
You need to buy right, which is unlikely, buy quality and buy big. A 1 carat diamond is not even entry level for investment grade, IMHO.
There are much better investments out there for individuals.

[93 Turbo]

I know nothing about diamonds, all I can offer is good luck. My wife on the other hand...

[SUBversive]

Originally Posted by crew

It's very hard, if not impossible, for the average guy to make money on diamonds.
You need to buy right, which is unlikely, buy quality and buy big. A 1 carat diamond is not even entry level for investment grade, IMHO.
There are much better investments out there for individuals.

Agree with this.

Also the problem I think of where to keep them after you buy them. It's like buying gold in my opinion.

[DarthBane]

Long term it's terrible. The prices are currently controlled by a cartel.

Diamonds can actually be made synthetically, but currently it is cost prohibitive to do so on scale. One day that may not be the case and we may start seeing high quality synthetic diamonds flood the market that are "chemically" the same as natural diamonds as the cartel (cough**DeBeers***cough) start losing control.

Unlike gold, diamonds can be made out of black rocks. You cannot synthetically make gold. Gold is only produced in Supernovas. And I think there arent any of those nearby.

[Vincent65]

Originally Posted by DarthBane

Long term it's terrible. The prices are currently controlled by a cartel.

Diamonds can actually be made synthetically, but currently it is cost prohibitive to do so on scale. One day that may not be the case and we may start seeing high quality synthetic diamonds flood the market that are "chemically" the same as natural diamonds as the cartel (cough**DeBeers***cough) start losing control.

Unlike gold, diamonds can be made out of black rocks. You cannot synthetically make gold. Gold is only produced in Supernovas. And I think there arent any of those nearby.

thankfully

[Kingair]

I am not into diamonds but the only thing I know is that the Diamond Center here in Antwerp, Belgium run by . . . . . is fooling the complete world.

Last year there was an investigation by the Belgian Tax Department and . . . . they found that the Diamond traders forgot to registrate for more than 5 billion Euro's . . . . small error that was made by 131 diamond sales companies . . .

This week there was a theft of diamonds and they found them back . . . hey how lucky are they !

60 % was, before they where stolen, Industrial diamond . . . . when they retrieved them . . . suddenly the whole lot was 100 % real diamond ? ? ?

So . . . I really have my thoughts about diamonds and the compete system that is run by a few very rich people . . . anyway here in Belgium I do . . .

HAGOne

[Lion]

Do a lot of research and study before you buy...as Diamonds right now are very costly and not a good value in my opinion(they are toward the peak of their cycle). As stated, do not buy any stones which are smaller than a Carat. They must be Certified Diamond and Clarity must be high(such as Flawless, VSS1 or VSS2)and Color must be Near Colorless(D, E or F).

There are other investment vehicles to research and study which can give you a better return on investment. One such field is Rare Numismatic coins but you must do your research and homework first. Because Numismatic coins, to me, fall under the category of Long Term Investments and do carry risk. I have been a Collector and Dealer for 48 years and all Commodities and Collectables cycle. You usually...can not buy a coin today and sell it in a month for a profit. Buy only the Rarest Coins(I prefer the 1700's and 1800's U.S. Coins)and buy them Certified by the PCGS Certification Service.....if you want to learn more just give me a nudge!!!

Take it easy.....Leo

[esm]

Originally Posted by nitros

What's your feeling about to buy diamonds as an investment?

what kind of investment return are you looking for?

[DarthBane]

I think comic books are a better investment than diamonds.

Spider-Man #1 anybody?

[Rodentman]

I have an EightStar diamond which I bought because it is beautiful. I had it set in a pinky ring. I have no illusion that it is an investment. It may increase in value but I have no intention of selling it.

To me, jewelry, including high end watches, Rolex etc are not investments. In fact I am often surprised by the number of posts inquiring about buying with the intention of "flipping" said items. Buy what you like, if it's a quality watch or gem it will usually retain its value and you can enjoy it virtually forever, or your heirs can.

[wantonebad]

Don't be fooled that it is a tangible commodity which is regulated and supply information is made public. Diamonds are controlled by unregulated unmonitored private companies and they set the prices and control the market. Investments IMHO are for free market commodities and diamonds are the exact opposite of that.

[FoxyNYC]

Originally Posted by nitros

What's your feeling about to buy diamonds as an investment?

I'm no expert but probably not the best investment (if you're referring to physical diamonds and not an investment vehicle that invests in futures or something). I'm "stuck" with my old engagement ring and found the resale value to be horrendous. I have not looked into auction houses yet but have been to just about every dealer here in NYC.

[Thatguy]

I just bought one for my girlfriend as an investment in our future. Time will tell how it will pay off. :)

[FoxyNYC]

Oh yay!!! Congrats.... proposing??!

[mannyv11]

Originally Posted by wantonebad

Don't be fooled that it is a tangible commodity which is regulated and supply information is made public. Diamonds are controlled by unregulated unmonitored private companies and they set the prices and control the market. Investments IMHO are for free market commodities and diamonds are the exact opposite of that.

very well said

[Kingair]

Originally Posted by Thatguy

I just bought one for my girlfriend as an investment in our future. Time will tell how it will pay off. :)

B I N G O !

Time will tell . . .

Good luck anyway . . . ;-)

HAGOne

[Thatguy]

Originally Posted by FoxyNYC

Oh yay!!! Congrats.... proposing??!

Thanks, I did a few months back and got a subc in return. There is a thread with pics. Can't link now, on tapatalk.

[Jeffex]

Originally Posted by 93 turbo

i know nothing about diamonds, all i can offer is good luck. My wife on the other hand...

x2

[rr-nyc]

If you buy at or below Rapaport prices, you're fine. If you're buying or bought at retail, you're not very investment savvy.

Yes, the diamond market is unregulated and controlled primarily by one company, DeBeers. Besides the occasional off month, diamonds always go up in price. You can google historical prices to verify. The only way diamonds would lose significant value is if DeBeers flooded the market- but they have nothing to gain by doing so which makes that a near impossibility.

[amani]

congrats, disregard the rock you bought, you just made the most profitable investment--a commitment. I would by gold, not talking about 24k golden jewelry, I am talking about 9999 solid golden nuggets. the price has increased by >5 times or so in past 10 years. diamonds require a lot of skills to determine, while gold, you may not make anything at the end, but it definitely won't depreciate as fast as currency.

[Wacker23]

I bought a diamond ring for an ex. Tried to sell it, got shit money for it. Bought 1oz American gold eagles coins for 450-800 in a 8 year period. Sold them on ebay last year for 1400-1800. Had a great year. In summation buy gold coins. Diamonds suxx.lol

[mastermixer]

I have been a dealing in diamonds for just over 30 years now. They are definitely one of the better investments over the course of history but you have to know how to buy and the different factors that contribute to the value of the diamond. Most people will just look at the GIA cert but there are many factors that add and detract value and can only be seen when you have the stone in person. The larger diamonds of average or better quality (over 10 carat) and colored (pink,blue,green,red) have skyrocketed. What I like about them is they are small and you can put them in your safe and not worry as there is no maintenance, unlike a watch for example in which you have to worry about servicing or it being damaged. If you are going to buy retail and try and sell it a year later you are most likely going to get slaughtered, but I have had many people come to sell to me who inherited diamonds and got way more than what they were purchased for.

[Kingair]

I don't know anything about diamonds . . . besides what we all know . . . but for the same money they just sell me an industrial diamond . . . I really wouldn't notice I am afraid . . .

I can tell you a 1000 stories of things that happen here in the Antwerp Diamond Trade Center . . . you won't believe them . . .

Diamonds are a girls best friend . . . and the friend is ripped off in front of his girlfriend . . .

We'll not always . . but still I would watch out !

Here is a link to the article of my post # 7 in this thread . . . it's in Flemish but Google did the translation

Really a honest business . . . diamonds in Antwerp . . .

http://www.nieuwsblad.be/article/det...30115_00434381

HAGWe






In a scam with diamonds in Antwerp is something strange happened. Six hundred synthetic diamonds that the police wanted to confiscate, appeared after control are indeed natural gemstones are. The investigators are puzzled.
A specialized laboratory in Antwerp discovered the scam in November last year. Six hundred stones on the market were sold as genuine, natural diamonds were actually synthetic, manufactured stones are. The quality of the fake diamonds was so good that even a diamond trader with years of experience could not make the distinction, even with a magnifying glass or a microscope.

The police took the stones in batter and let them investigate in a lab. The researchers found something very strange fixed. The seized diamonds were all natural stones, from the synthetic was no trace.

The prosecutor confirmed the story and said that the investigation is still in progress.

[mastermixer]

There actually are different devices that one can buy that can tell synthetics from natural, the diamond sure and diamond view made by De Beers are the main two that work hand in hand. Synthetics are not that prevalent yet and they are mostly in small sizes under 1 carat. The devices are still rather expensive and because of that most jewelers will not have them. If it gets to the point where they are able to make larger diamonds people will be forced to by the synthetic testers and the price of them will come down.

There are scams in lots of industries, the main thing is to deal with someone that is known and trusted.

Originally Posted by Kingair

I don't know anything about diamonds . . . besides what we all know . . . but for the same money they just sell me an industrial diamond . . . I really wouldn't notice I am afraid . . .

I can tell you a 1000 stories of things that happen here in the Antwerp Diamond Trade Center . . . you won't believe them . . .

Diamonds are a girls best friend . . . and the friend is ripped off in front of his girlfriend . . .

We'll not always . . but still I would watch out !

Here is a link to the article of my post # 7 in this thread . . . it's in Flemish but Google did the translation

Really a honest business . . . diamonds in Antwerp . . .

http://www.nieuwsblad.be/article/det...30115_00434381

HAGWe






In a scam with diamonds in Antwerp is something strange happened. Six hundred synthetic diamonds that the police wanted to confiscate, appeared after control are indeed natural gemstones are. The investigators are puzzled.
A specialized laboratory in Antwerp discovered the scam in November last year. Six hundred stones on the market were sold as genuine, natural diamonds were actually synthetic, manufactured stones are. The quality of the fake diamonds was so good that even a diamond trader with years of experience could not make the distinction, even with a magnifying glass or a microscope.

The police took the stones in batter and let them investigate in a lab. The researchers found something very strange fixed. The seized diamonds were all natural stones, from the synthetic was no trace.

The prosecutor confirmed the story and said that the investigation is still in progress.

[77T]

You can invest in diamonds without risk of fakes and physical ownership via a new ETF that opened in late 2012. It has already outpaced other funds - research GEMS. Not a pure play because other gemstone mining companies are in the fund, but a place newbies can play the trade if they believe diamonds will rise significantly.

Unless you're a pawnbroker and buying for .25 on the $, I see no way to call the stones an investment.

[rr-nyc]

Originally Posted by 77T

You can invest in diamonds without risk of fakes and physical ownership via a new ETF that opened in late 2012. It has already outpaced other funds - research GEMS. Not a pure play because other gemstone mining companies are in the fund, but a place newbies can play the trade if they believe diamonds will rise significantly.

Unless you're a pawnbroker and buying for .25 on the $, I see no way to call the stones an investment.

If a 300% return is the minimum you need in order to call something an investment, I think every investment bank would be out of business

[FNFZ4]

Not really an expert with diamonds but I have seen people use them as currency. There is money to be made in them if you know what to pay and where to get them at the right price.

[rr-nyc]

During the economic meltdown in 2008/2009, high end diamond sales went through the roof...even at retail. A lot of people that cashed out of Wall Street and real estate wanted a safe place to put their cash while they rode out the storm.

Places like Graff couldn't keep enough inventory of large stones to keep up with the demand

[ROLEX2447]

Originally Posted by nitros

What's your feeling about to buy diamonds as an investment?

I think Diamond investng is like most anything else.

If you know what you are doing,you'll be ok,but if not,

well,you know what can happen.

I've got many friends/family members who bought certain things as "investments",then,after the fact,they do the research and find they wish

they had done more first.

Just be careful...

Good luck!