DIAMONDS
Investing in diamonds means “protecting heritage”. In fact, buying a diamond today does not mean being able to make short-term speculation, but it means protecting its savings for the medium to long term (7-10 years).
The diamond is a guarantee: the historical trend shows that it never loses its intrinsic value and does not undergo any monetary and financial inflation, nor is it affected by political changes.
Therefore it can be considered the best “shelter asset” and an interesting tool to diversify its 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 trend of value growth in the coming years.
The diamond is also a “good of enjoyment”, as well as a work of art.
Unlike other products, diamonds can be assembled, worn and enjoyed by those who possess them, without losing value and can also be easily moved and transported from one place to another, as well as being easily protected thanks to their small size and weight.
Another important aspect is the liquidity that a diamond can offer compared to other assets, especially at world level and in any political context.
THE PRICE OF THE DIAMONDS
The price list for diamonds is called Rapaport. In it the price is the result of the relationship between weight, color, purity and cut.
This is not a sales list in the strict sense, rather than a guide to determining the price that is made by professionals in the sector. The prices of the Rapaport price list are for stones certified GIA – HRD – IGI (Antwerp) and are expressed in US dollars, net of VAT.
The price of a diamond is also determined by other equally important factors, including symmetry, fluorescence and polishing. These factors affect precisely because they make the gem much more precious than another.
With the same weight, color and purity, it costs more a diamond that has excellent characteristics. Fancy or colored diamonds are not classified in the Rapaport price list.
The diamond is a guarantee: the historical trend shows that it never loses its intrinsic value and does not undergo any monetary and financial inflation.
Therefore it can be considered the best “shelter asset” and an interesting tool to diversify its savings.
HOW TO INVEST
Buying diamonds is an investment that allows you to protect your assets and it would be appropriate to dedicate a part of your portfolio from 10 to 25%; it is however advisable to consult a true gemmologist professional, so that the investor can be guided to make the right choice: depending on the amount to be allocated, it may be convenient to buy only one rare and rare diamond, or buy several small cut diamonds (a starting from 0.50 ct).
ETHICAL DIAMONDS
The “ethical diamonds” are diamonds imported exclusively with certificate of origin according to the UN resolution which guarantees their origin from countries not involved in war events or connected to international terrorism.
These diamonds respect the “Best Diamond Trade Practice” against the exploitation of child labor.
KIMBERLEY PROCESS
The Kimberley Process (KPCS) is a certification agreement aimed at ensuring that profits from the diamond trade are not used to finance civil wars. The agreement was finalized and approved with the combined effort of the governments of many countries, of diamond-producing multinationals and of civil society.
Following a conference in Kimberley, South Africa, the KPCS certification scheme was established in May 2000. The problem of diamond production and conflicts in producing countries was discussed at the conference. In the same year the World Diamond Council was established in Antwerp on the initiative of the World Federation of Diamond Bourses and the International Diamond Manufacturers Association. The World Diamond Council set out to consolidate a control system on rough diamonds, in keeping with the findings of the Kimberley Conference.
In December 2000, the United Nations General Assembly called for the creation of a scheme to certify the origin of diamonds from exporters who do not finance civil wars; in November 2002, 37 states signed an agreement in Interlaken for the activation of a certification system in the circulation of rough diamonds. The World Diamond Council and the multinationals involved in the extraction, trade and sales activities also took part in this meeting.
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 should not be used for financial civil wars and organizations that intend to overthrow the government recognized by the United Nations.
2- Each diamond exported must be accompanied by a certificate certifying the Kimberley Process scheme.
3- No diamond must be imported or exported from a country that has not joined the Kimberley Process.
The Republic of the Congo was excluded in 2004 from the agreement because it was not able to guarantee the basic requirements of the KPCS. Inefficient countries are in fact sanctioned economically. In December 2006, only the Ivory Coast and Liberia are still subject to United Nations sanctions on diamonds.