Prospects for investment in diamonds
Question: Can Diamonds become an investment tool that will save (s) or the means to multiply the population?
Reply: There is a prejudice that the price of diamonds never fall and grow continuously. Based on this idea of using diamonds as an investment tool. Diamonds are bought because it is – an absolute gift, a way to convey their feelings to the one to whom he had given, Brilliant – it is also a decoration, and the opportunity to highlight the status, and some as an investment. Diamonds are diverse in size, shape, color and purity. These parameters determine the price of a diamond, for each individual stone. In order to invest in diamonds to analyze information not only about how to behave on the average price of diamonds, but as prices change on different categories of stones.
Question: To what extent this is relevant for savings over the short and long term?
Reply: And when buying and sell diamonds dealers and jewelers in one form or another hold their commissions. It turns out that buying a diamond, we pay the dealer, and selling a diamond, again we pay the dealer. Unlike exchange operations in the exchange, the commission dealer is not transparent and known to the investor. If the price of diamonds has increased for the year, for example, 10%, the profits from the sale of diamonds after a year of ownership, they may not cover costs. Therefore, diamonds often bought at the rate of long-term.
Question: How would you compare the investment prospects in stone-mounted and uncounted?
Reply: If you take the cost of uncounted stones for 100%, then the manufacture of jewelry to the value will be added to the cost of design, metal work, wholesale and retail trade margins, mark-up for the brand. If the sum of all taxes as a percentage of the value does not change, in absolute terms, it will increase in proportion to the increase in the value of all the above operations. Therefore, although the finished decoration and better uncounted diamond in the sense that it can be put on and wear loose diamonds is significantly cheaper in comparison with the product of the same stone. One of the methods of creating value is to purchase loose diamonds, followed by ordering production of jewelry.
Question: In what rocks really profitable to invest?
Reply: No one knows the price of Diamonds will change in the future. You can analyze on what categories of diamond prices rose the most in the last 5 years. This will be primarily diamonds weighing over 1 carat of high and good color and quality characteristics. Price stones with high color purity and is growing faster than the average price for all size groups.