Are diamonds good investment assets and what care should be taken before investing in these precious stones? The most famous diamonds in the world have enchanting fables associated with them. Read on…
Diamonds are forever is the theme song of James Bond 007 Sean Connery’s movie with the same title Diamonds are forever. And Marilyn Monroe famously sang diamonds are a girl’s best friend. Diamonds intrigue and dazzle the swishy set and the common man. So let astro-strategist and Business Astrologer Hirav Shah answer some interesting FAQs regarding the diamond industry. Are diamonds good investment assets and what care should be taken before investing in these precious stones? The most famous diamonds in the world have enchanting fables associated with them. Read on…
1) Why invest in diamonds?
Well, to flaunt them is the quickest answer. But for a shrewd investor, it is more than just showing off the lovely stones. They are a good option for future prospects. Rarer the gem, the more valuable it becomes. Diamonds are the best concentrated form of portable wealth. They are sort after world over and can be liquidated at will. The best and rare diamonds come in limited quantities and can hedge against recessions. There will be future appreciation of value and you off aesthetic appeal. However, don’t expect to have asset value if your diamonds are less than 1-2 million, at the least.
2) What must one look for while investing in diamonds?
a) Extremely huge carat sizes, for example about 20 carats for colourless diamonds.
b) Good clarity along with carat size for rare coloured diamonds.
c) Diamonds that have an interesting history, basically celebrity-owned pieces or noteworthy historical items.
Such diamonds are often found in record-breaking auctions. So, unless you have really deep pockets, let go of the idea of investing in diamonds.
3) What is an ideal way in which investment-grade diamonds can be acquired?
An ideal way to ensure liquidity and transparency is to buy stocks in mining companies or jewellery retailers.
Here are just a few examples of companies you could try investing in –
a) Tiffany & Co: NYSE: TIF
b) Signet: NSE: SIGNET
c) Rio Tinto Ltd: RIO AX
d) Anglo American PLC: AAL.L
e) Dominion Diamond Corp: DDC.TO
f) Lucara Diamond Corp: LUCRF
They are just examples and I am not directly promoting any of them.
4) What about going digital and doing online trading?
One has to be financially savvy retail investor or take guidance from business strategists like me, who can guide as per market trends. Let me suggest Singapore Diamond Investment Exchange (SDix) that was launched in 2016. It happens to be the world’s first commodity exchange trading in physically settled diamonds. It helps potential investors to browse and buy single stones graded by GIA (Gemological Institute of America).
Let me give a piece of advice here, like all other financial markets, diamond trading too is a shark tank where professionals have a huge leverage over everyday investors.
5) What are the four Cs of diamonds?
The four main characteristics to check for include cut, carat, clarity and colour. These are the primary features that will tell you of the price and quality of a diamond or diamonds.
Clarity and colour describe the diamond’s material properties. Cut shows the work the diamond cutter has put into polishing the stone and carat represents the metric weight of the diamond. Just FYI, a carat equals two hundred milligrams.
6) Which is the most popular diamond shape?
A 57 facets round brilliant cut is considered to be among the most popular. Then of course, there is the princess cut and the round cut diamond. Other shapes include cushion, oval and emerald shapes.
7) What are blood diamonds? Is it wise to invest or is it politically correct to invest in them?
No, blood diamonds come from conflict zones. They are referred to as war diamonds or converted diamonds or hot diamonds. They are mined under controversial circumstances in a war zone and are used to finance insurgency in these places.
Blood diamonds come from countries in Africa such as Angola, Ivory Coast or Liberia. Commercial selling of such diamonds is banned in the United States and European Union. They do not come with proper paperwork to trace their origins and are often transacted in illegal smuggling.
The best way to avoid buying blood diamonds is to ask for a written guarantee and proof that the rough diamond was mined in accordance with Kimberly Process.
8) Is it okay to buy diamonds through online stores?
Of course, there are bound to be doubts and scepticism about purchasing precious stones online. However, in today’s digital world, where e-commerce is becoming a norm, there are a lot of great places to buy diamonds online. Some have completed at least two decades in the market and millions of people shop in these stores. The fact that they are still in business speaks of their credibility.
9) What are some world-famous diamonds?
1) The Hope Diamond:
This mysterious looking dark blue diamond is widely considered as one of the most spectacular gemstones in the world. It weighs 45.52 carats and is the size of a walnut. It is said to have Indian origins.
It has been with famous people like King Louis XIV and heiress Evalyn Walsh Mclean. But the diamond is considered to be cursed.
In 1949, Harry Winston purchased the diamond and donated it to the Smithsonian Institute in 1958 where it is on display currently.
The 20 carat pale orangey pink diamond has a near perfect cut and a very unique shape, that of a kite. The diamond was named after Queen of Holland, who was the step-daughter of Napoleon Bonaparte. Presently, it can be viewed at Paris’ Musee du Louvre and is part of French crown jewels.
Or the mountain of light is an oval cut stone weighing 105 carats. It has a history of ever changing ownership. Today, it can be found as a part of British crown jewels in the Tower of London.
The pear shaped diamond weighing 69 carats is the biggest piece that came from an astonishing 240 carat rough diamond. It’s a recent inclusion into the world of famous diamonds. The diamond was symbolic of the relationship between Richard Burton and Elizabeth Taylor. He set it in a ring as a gift for her. After Burton’s death, Liz Taylor sold it for $2. Million and donated a large part of it to charity in memory of her husband.
5) The Great Star Of Africa, the Cullinan:
Presently, Cullinan is the largest polished, colourless diamond in the world and weighs a hefty 530.20 carats. The diamond was actually cut from a larger piece of diamond which weighed 3106 carats. This exquisite jewel is currently set in the royal sceptre and kept in the Tower of London as part of British crown jewels.
10) Is it often said that diamonds are not lucky for everyone. Should we check it if it suits us?
Yes, certain gemstones are suited for certain people based on various astrological factors. It is best to take both astrological and investment consultation from me, to make the right decision and gain valuable assets.