DIAMONDS
INVESTMENT DIAMONDS
Investing in diamonds means "protecting your assets." Buying a diamond today doesn't mean you can engage in short-term speculation, but rather protect your savings for the medium to long term (7-10 years).
Diamonds are a guarantee: historical trends demonstrate that they never lose their intrinsic value and are not subject to monetary or financial inflation, nor are they affected by political changes.
Therefore, it can be considered the best “safe haven” and an interesting tool for diversifying one's savings.
Currently, the United States and emerging countries such as China and India have increased and will continue to increase their demand for diamonds, ensuring the growth trend in value in the coming years.
The diamond is also a “good for enjoyment”, as well as a work of art.
Unlike other products, diamonds can be mounted, worn, and enjoyed by their owners without losing value. Furthermore, they can be easily moved and transported from one place to another, and are also easily protected due to their minimal size and weight.
Another important aspect is the liquidity that a diamond can offer compared to other assets, especially on a global level and in any political context.
THE PRICE OF DIAMONDS
The diamond price list is called the Rapaport. It determines the price by comparing weight, color, clarity, and cut.
This is not a price list in the strict sense, but rather a guide to pricing provided by industry professionals. Rapaport price lists are for GIA, HRD, and IGI (Antwerp) certified stones and are expressed in US dollars, excluding VAT.
A diamond's price is also determined by other equally important factors, including symmetry, fluorescence, and polish. These factors influence the value of a gemstone precisely because they make it much more valuable than another.
Given the same weight, color, and clarity, a diamond with excellent characteristics costs more. Fancy diamonds, or colored diamonds, are not classified in the Rapaport price list.
Diamonds are a guarantee: historical trends demonstrate that they never lose their intrinsic value and are not subject to monetary or financial inflation.
Therefore, it can be considered the best “safe haven” and an interesting tool for diversifying one's savings.
HOW MUCH TO INVEST
Buying diamonds is an investment that allows you to protect your wealth, and it's a good idea to dedicate 10 to 25% of your portfolio to it. However, it's a good idea to consult a professional gemologist to help you make the right choice. Depending on the amount you're investing, it may be worthwhile to buy a single, large, and rare diamond, or several smaller-cut diamonds (starting at 0.50 ct).
ETHICAL DIAMONDS
“Ethical Diamonds” are diamonds imported exclusively with a certificate of origin in accordance with the UN resolution which guarantees their provenance from countries not involved in war events or linked to international terrorism.
These diamonds comply with the “Best Diamond Trade Practice” against the exploitation of child labor.
KIMBERLEY PROCESS
The Kimberley Process of Diamond Enforcement (KPCS) is a certification agreement aimed at ensuring that profits from the diamond trade are not used to finance civil wars. The agreement was developed and approved through the joint efforts of the governments of numerous countries, multinational diamond producers, and civil society.
Following a conference held in Kimberley, South Africa, in May 2000, the KPCS certification scheme was agreed upon. The conference discussed the issue of diamond production and conflicts in producing countries. That same year, the World Diamond Council was established in Antwerp, initiated by the World Federation of Diamond Exchanges and the International Diamond Manufacturers Association. The World Diamond Council aimed to consolidate a system of control for rough diamonds, in line with the outcomes of the Kimberley Conference.
In December 2000, the United Nations General Assembly called for the creation of a scheme to certify the provenance of diamonds from exporters who do not finance civil wars. In November 2002, 37 states signed an agreement in Interlaken to establish a certification system for the circulation of rough diamonds. This meeting was also attended by the World Diamond Council and multinationals involved in mining, trading, and sales.
The requirements that a state must meet in order to participate in the certification scheme are the following:
1- Diamonds from the country of origin must not be used to finance civil wars and organizations seeking to overthrow the government recognized by the United Nations.
2- Each exported diamond must be accompanied by a certificate attesting to the Kimberley Process scheme.
3- No diamonds should be imported or exported from a country that has not joined the Kimberley Process.
The Republic of Congo was excluded from the agreement in 2004 because it was unable to meet the basic requirements of the KPCS. Countries that failed to do so were effectively subjected to economic sanctions. As of December 2006, only Côte d'Ivoire and Liberia remained subject to UN sanctions related to diamonds.
