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Investing in loose diamonds
BouncingCzech
Posted: 29 July 2011 10:52:56(UTC)
#1

Joined: 24/09/2010(UTC)
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My wife keeps pestering me to invest in diamonds. Does anybody have any experience with this?

The problems I see are:

Large buy/sell spread.
Despite certification, valuation is to some extent still subjective.
Having to pay VAT when buying.

Patrick
Karl Smith
Posted: 29 July 2011 13:42:42(UTC)
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I think your wife by "investing" may mean you should "invest" in some jewellary for her!

Otherwise an interesting snippet http://uk.ibtimes.com/ar...nvesting-strategies.htm gives a recent view of the diamond market.

One big problem I see is that companies such as De Beers (who have a nice vertical market from mine to retail outlet) have the ability to manipulate the market (in terms of the supply) perhap more so than other commodities. Plus there is a sense that investing in the physical asset is inherantly risky for the unknowing e.g. providence, validation/certification etc.
I can see no reason to try an enter this market. The professionals will always win and I just do not know enough (or am willing to spend the time) to be able to identify and assay quality (never mind value).
Jeremy Bosk
Posted: 30 July 2011 11:13:33(UTC)
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I agree with Karl and would add that diamonds are on a rising trend so you have missed the bottom of the market. However, diamond miners have not yet moved. Petra Diamonds, Stellar Diamonds and Firestone Diamonds are recommended in this week's IC.
BouncingCzech
Posted: 01 August 2011 10:25:31(UTC)
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Thanks for the replies. My wife does mean loose diamonds not jewellery. That link provides some useful information - it certainly seems that more research is necessary. The biggest problem seems to me to be VAT - unless one buys and holds diamonds somewhere offshore.

Patrick
W R
Posted: 30 November 2011 11:45:23(UTC)
#5

Joined: 30/11/2011(UTC)
Posts: 2

if you are still looking for diamonds we resource some extremely rare diamond, get in contact. wjv@stonehouseglobalmarkets.com
W R
Posted: 12 December 2011 10:41:00(UTC)
#6

Joined: 30/11/2011(UTC)
Posts: 2

a few rare allocations have just come in before christmas, get in touch..... wjr@stonehouseglobalmarkets.com
Spartacus
Posted: 22 December 2011 22:00:26(UTC)
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Diamonds are one investment I won't touch. They're basically the same material as soot or pencils and artificial diamonds are now of a higher quality than the real thing..
banjofred
Posted: 23 December 2011 07:44:16(UTC)
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I agree with all of the others.

All you can read about diamonds says that the supply is manipulated by the South africans and always has been.

They are shiny bits of rick whihc are quite hard and useful in industry. Otherwise they are shiny bits of rock.

Remember the satellite tv channels selling loose diamonds whihc disappeared. One went bust leaving losing customers.

Diamonds are bits of rock.

Now GOLD thats the real thing !!!!!!
1 user thanked banjofred for this post.
Robert Court on 23/12/2011(UTC)
Robert Court
Posted: 23 December 2011 08:29:06(UTC)
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Banjofred

Industrial diamonds are useful and hard.

Gold is soft and so are some women.

But some hard women like gold and I remember one who kept a Welsh gold wedding ring but returned the other rings made out of harder stuff.

My advice to a woman concerned about investments is not to bother about either diamonds of gold but to keep a beady eye on a wealth creating partner's will.

'Where there's a will there's always a way to make a buck or two'
David Atherton
Posted: 23 December 2011 16:58:20(UTC)
#10

Joined: 23/12/2011(UTC)
Posts: 3

1. Diamonds are NOT a free market. Rubies are instrinsically much rarer but as others say De Beers control the price. Their policy is indeed illegal in some jurisdictions. You will notice there is no quoted market price for diamonds, like there is for metals.

2. In any event, like gold, the normal way to invest is in a miner, or at least an ETF, not the product. In particular, there is not the infrastructure of storage like there is in gold and silver. Diamond miners are in the ascendant, but not as much as gold miners or oil explorers.

3. I can't help thinking, like the other commentators, that your wife's opinion is driven by her view of diamonds as a luxury product. Any diamond investment would almost certainly be in industrial product rather than gemstones where, as you say, the spreads are at retail margins, not investment margins.

4. Download the accounts of some major jewellers at duedil.com to see what retail margin there is on gemstones.
Thomas Smith
Posted: 05 January 2012 20:08:46(UTC)
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David Atherton makes some good points.

I remember being told diamonds have a 100% mark up in stores...it seems major suppliers might do the same....but I don't know. Good Luck.
Neha Joshi
Posted: 21 March 2012 06:16:48(UTC)
#12

Joined: 21/03/2012(UTC)
Posts: 1

View Loose Diamond Collection to make a rock solid investment. Also win exciting prizes through kama’s Diamond Quest. To begin your quest visit: http://on.fb.me/GCJFqQ
emma smith
Posted: 06 December 2012 12:46:11(UTC)
#13

Joined: 06/12/2012(UTC)
Posts: 1

I believe that she wants you to "invest" in some jewelry for her! There is a vast range in the quality, shapes and prices of diamonds that mainly depend on your wife’s choice. Investment in any diamond solitaire will be worthwhile for you.

Choose the best store to buy a real one, take help of your local jewelers - if they can get it for you its good, but if you are not getting the proper choice in the local market, then conduct a search online to find good online stores. Nowadays many stores have websites that help you purchase jewelry from your home. An example of such a store is thediamond.com – it offers some amazing gems at reasonable prices. You can even do more research online for more sites.
Ines
Posted: 06 December 2012 21:40:41(UTC)
#14

Joined: 22/06/2009(UTC)
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I would ask your wife why she thinks diamonds are a good investment. As others have pointed out there is a big cost in buying and selling and you are entering a market where other people are experts and you are at their mercy. Also you have to keep them somewhere safe and insure them. And how liquid will be market be when you want to sell them? The only possible advantage I can see is that the taxman might not know they are there - IHT and all that.
Miss Mul
Posted: 04 February 2013 11:23:14(UTC)
#15

Joined: 04/02/2013(UTC)
Posts: 1

Hi All,

I am interested in finding out more about people who have chosen to (or chosen not to...) invest in diamonds. Is there anyone here who could tell me more about your decision??

You can PM me if you wish to chat in private!!

Miss Mul :)

Joseph Smith
Posted: 11 February 2013 22:19:21(UTC)
#16

Joined: 11/02/2013(UTC)
Posts: 2

Remember all those scammers selling plots of land at hugely inflated prices (Landbankers)???

They are all selling diamonds now (especially coloured diamonds)...

Really easy to buy but almost impossible to sell.

The thing with diamonds is they are only worth what someone is prepared to pay for it... which will be a LOT less than what you value it at.

There is no market to set prices unlike gold etc.

my advice is to STAY WELL CLEAR.
martigapito broker
Posted: 12 February 2013 00:15:41(UTC)
#17

Joined: 11/02/2013(UTC)
Posts: 2

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