The Polish investment market is changing and many customers notice that currently it pays to have an asset in your portfolio that is quiet, highly mobile and, most importantly, always on hand.
Diamonds are such an asset. Experienced investors consider them as a more secure form of capital investment than gold.
We talk about the trends in the diamond investment market with Marcin Marcok, an expert on the gemstone market and owner of MART DIAMONDS. (FORBES 1/2020)
Is investing in diamonds different than investing in precious metals?
Precious metals are the same products as many others on the market and are mostly very susceptible to speculation, good for a short-term investment. Diamonds, on the other hand, are not only beauty and a unique value transferred in time but above all an exceptional awareness of the investor choosing this asset. When you choose a diamond, you know that you want to achieve something completely different than everyone else. You’re investing in your future. You are protecting yourself and your loved ones. When choosing the most exceptional and rarest, often colored diamonds, you look into your future with a very broad context. The profits may be surprising, but the mere awareness of having a stone that is several billion years old is, as my customers often say, incomparable to anything else
What are the prices of diamonds on the market? What determines their price?
Colorless diamonds are priced based on the principle of four components (4Cs) that determine their weight (carat), color, clarity and cut. The higher the quality and rating, the more unique and precious the stone is. It seems that a price of USD 18,000 per 1 ct of the best quality diamond is currently the most optimal and perfectly reflects the value of such a stone. The situation on the market of color diamonds is entirely different. Here we should act swiftly. Longer hesitation may cost us a dozen or so thousand dollars per carat of the most desirable pink or blue diamonds.
What is the minimum investment duration?
Diamonds are a long-term investment. If done properly, it may bring a spectacular profit. I know from experience that the longer diamonds are in our possession, the more we profit from them. The next few years will be good, the next ones will probably be even better, albeit much, much “more expensive”. Each diamond and its prospects should be considered individually. We base our information on very reliable data that we collect from the market. We are able to precisely plan the investment on its basis. However, most of my customers invest in their future, often making purchases for future generations.
What should we begin with when investing in precious stones?
The key is to specify the plans and goals we set for a given diamond. What do we want to achieve? What do we expect from the stone? Do we want a stone of as much weight and quality as possible, or do we prefer a few smaller ones that can be used as currency in extreme circumstances? In fact, you should start by talking with someone like myself – a diamond dealer who, by learning about our expectations, can indicate the most optimal solution. The minimum amount is generally considered to be USD 10,000, but I wouldn’t strictly stick to that. You can start building a collection from USD 1,500 and purchase quite interesting diamonds.