What to Keep in Mind When Investing in Diamonds

In this modern day and age, diamonds are renowned for being a more popular investment than gold.

In this article, we’ll take a look at who is investing in diamonds and why.

The Playing Field

As with any other investment, it helps to know who else is in the diamond investing business . Many investors operate without communication between themselves. However, there are also companies that are invested in the diamond investment business. Companies like De Beers buy stocks in diamond supplier businesses, which allows the diamond industry to grow.

Choose How to Invest

Although many people think that buying diamonds outright is the only way to invest, there are other options available. You can purchase diamonds as part of a self-managed superannuation fund, which has been a popular option in Australia. However, this means that you will not be able to wear the diamonds. On the other hand, the tax savings you will acquire will allow you to buy another wearable diamond.

You can also choose to invest in the companies behind the diamonds, whether that is through buying their stocks or contributing to their funds.

Out of these options, however, directly purchasing the diamonds holds the most appeal for the majority of investors.

Direct Diamonds

Buying diamonds outright is a very popular way of making an investment and its benefits are clear. Pink diamonds are a stable investment. In the past decade, their value has increased by over 300%, unlike any other style of investment. Experts say that this value will only continue to increase in the future, especially when the Argyle mine closes and the supply of pink diamonds will be cut off.

Pink diamonds are also a wearable investment. Investors may fashion them into jewellery and wear them in a way that they can’t with stocks. For this reason, many investors choose to buy diamonds directly instead of other diamond investment strategies.

Additional Considerations

Unlike property, pink diamonds cannot give you a return every week. Their profit comes from their eventual sale, which is why it is vital to consider what sort of diamonds you are purchasing and how much they will be worth when you choose to sell them.

Colour is among the factors that need to be considered. Pink diamonds come in a variety of colours. As they themselves are inherently rare, there are colour combinations that will be rarer than the others. When you choose to invest in a diamond, consider choosing a combination that will give you a higher return in the future.

With colour, also consider saturation. All pink diamonds are beautiful but the brighter ones are especially dazzling and will likely fetch a larger price.

Take care with your supplier. It’s important that you source the diamonds from a business that is trustworthy and established in the diamond industry so that you can be sure you are receiving a premium product. As an investor, this is a very important thing to remember.

Talk to Australian Pink Diamond Investments

Here at Argyle Diamond Investments Pty Ltd, we understand the process of investing in pink diamonds. If you have any questions about this article or about pink diamonds, or if you would be interested in purchasing a pink diamond, feel free to contact us, either online or via 02 4927 0000.

Argyle Diamond Investments Pty Ltd are Australia’s largest supplier of Australian certified pink diamonds and have exclusive use of the Australian Pink Diamond Analytics program. This program is a data driven decision maker that tracks and statistically analyses the rarity, financial growth and value of all investment grade pink and blue diamonds. With this valuable information, Argyle Diamond Investments Pty Ltd can offer all clients an investment grade pink from $5,000AUD up. But, the highest growth diamonds, are the larger, stronger colour pinks starting from around $20,000AUD plus.


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