How should one invest his or her money in a context where the preferred investment schemes are risky or have a low return on investment. Even the real estate market is in a slump. Why not invest in diamonds? Their many advantages include: advantageous tax laws, a safe haven from inflation, and a hedge in the long term. In addition, the rate of diamonds is not linked to the changes in the currency markets, the stock markets or fund markets, giving diamonds a beneficial edge in the event of a stock market crisis. Caution though, investing in diamonds requires precise knowledge of criteria that determine their quality and therefore the price.
The market is expected to grow significantly in the next ten years.
According to a recent study conducted by Bain & Company consulting, twice as many diamonds will be sold by 2020. More precisely, the global demand should increase by 6% per year in the upcoming years while production will only rise 2% during the same period. The rate has been rising almost steadily since the 80’s, as the rarity and increasing demand for diamonds run parallel with the continuous decline in the rough diamond supply. Diamond prices are thus expected to go up inexorably…
Diamonds are not an investment with a short term return, they are more of a mid term investment. They present many advatages, most importantly of which, they are very small and resalable throughout the world. Diamonds are also a discreet investment and easy to transport: a 1-carat diamond for example (0.20 grams) can represent, in value, one or several gold bars. Diamonds require no other management other than being securely placed in a safe. They are eternal and do not go out of fashion nor do they need any maintenance. Diamonds are an investment that accompany growth with the aim of securing one’s savings. They can be considered as a precautionary mid and long term savings plan. Diamonds are impervious to speculative bubbles in so far as they evolve outside the financial system and that of the State. They are sheltered from bankruptcy and at the same time are not very impacted by crises. Diamonds can be easily bequeathed as well. (Check with your attorney or solicitor as laws may vary.)
The diamond business is very regulated. Negotiating with a professional therefore allows the buyer to meet, for the most part, import and export requirements for rough and cut diamonds.
Maison Jaubalet Paris offers traceability and authenticity of diamonds as well as attractive prices, as all of our gemstones are purchased directly on the Antwerp market.
All of our diamonds are sold with a certificate of authenticity or gemmology that specifies the characteristics of the diamond. It includes the type, clarity, as well as the color and year of acquisition. This document allows the buyer to avoid the purchase or resale of a fraudulent, fake or synthetic diamond. Diamonds must be provided in a secured sealed case. The GIA (Gemological Institute of America) is recommended, as it is recognized internationally. It is also highly advised to keep the bill of sale in a safe place as it contains all of the gemstone characteristics including the authenticity number.
in terms of color, clarity, size and weight to facilitate the possible resale. Diamonds less than 1 carat and and of lesser quality, color E, clairity VVS1, symmetry, poilished and cut without fluorescence will be more difficult to resell.
Diamonds as an investment are also interesting from a tax point of view. They are a part of the group of jewelry and assimilated (neither mounted or set). The purchase of a diamond requires no specific formalities or registration, unlike gold. Diamonds are considered personal property, the resale of which worth less than 5,000 euros is exempt from personal gain’s tax.
The resale of diamonds comes under two tax possibilities:
The experts of the Maison Jaubalet Paris can assist you in the choice of your diamond in order to meet your investment needs according to your budget and profitability criteria. Do not hesitate to contact us by email. (email@example.com) or by phone: +33 (0) 1 53 45 28 09