Maximize ROI with Diamonds
Investing in Diamonds has been a popular and secure option as compared to the stock market. We recommend taking a look at our article Investing in Diamonds before reading this article.
The projected price increase of diamonds will strongly dilute if the investment diamonds are not bought at the source. The further away you purchase your diamonds from the source (thus where they are polished), the more likely your future profit potential will have been (partly or even entirely) evaporated via margin addition by intermediate parties. This is why it is crucial to cooperate with parties who are able to purchase at the source.
The price for any given quality of diamond can vary a lot depending on where they were purchased. From an investment point of view, it is important to buy at the best possible price. Over time, the value of the diamond is expected to rise due to the declining supply and the growing demand. The lower your purchasing price, the faster you will be able to sell your diamond with a profit and the higher this profit will be.
When to resell?
A diamond is not a speculative good. A diamond is, and should be treated as, a long term investment. We offer a free valuation of diamonds bought at our factory more than a year ago but we advise to hold diamond investments for a much longer period to maximize the possible return. Upon request, our MANEE Diamond experts can assist on potential resale.
How it works?
Our experts provide you with a current price quotation for the diamond on sale, along with an advice based on the price evolution of diamonds of this quality. Based on the price evolution, your initial purchasing price and the current quotation, you will receive recommendation to sell or to hold.
Take a look at some of our articles that provide insights on Diamond pricing, origin and investment.
The below data & figures are the result of extensive market research & financial analysis provided by
Bain & Company and the Antwerp Worldwide Centre (AWDC). These data & figures confirm the anticipated price increase for diamonds.
Depleting Mining Capacity
It's unlikely that a significant new deposit will be discovered and commercially developed in the next ten years. The best and easiest deposits have already been found. The last major miners were discovered more than 20 years ago.
In total, explorers have sampled fewer than 7,000 kimberlite pipes worldwide. Of all these finds together, only 15% have held diamonds and just 1% (about 60) have held enough of them to justify building a mine. If a new mine should be built, know that it takes up to 13 years to start the production of a mine.
Worldwide Jewelry Demand
During the past decade India and China became the largest jewelry markets.
The GDP per capita, a reliable indicator of the demand for diamonds, supports the previous statement. The GDP growth is strongest in China and India, and these countries are considered as the driving forces for the worldwide diamond consumption in the coming years.
Millennials have not yet reached their peak spending years, while baby boomers have moved beyond theirs. Diamonds have a very positive image in this generation.
Natural diamonds are a finite resource that require enormous effort to mine. It is very unlikely that a new, economically viable supply of diamonds will be discovered. Aside from depleting supply, the demand for diamonds is expected to rise due to the growth of developing countries and the coming of age of the millennial. Both factors create a very positive outlook for the diamond industry. This does not mean that an investment in diamonds entails no risk. As for all commodities, the value of diamonds can change over time due to socio-economical changes. However, diamonds have shown a great ability to recover and have proven to be very crisis resistant.
History of Diamond Prices
Diamonds have always been valuable - the price plays a big part in making diamonds a luxury.