Posts tagged coloured diamonds

For love… or money. Why do we buy diamonds?

Diamonds are eternally fascinating. They can also be a good investment if you know how to cut the right deal, says jewellery expert Lewis Malka.

 

Have you ever wondered why there is no way to buy diamonds on the stock market? You can buy almost anything else – sugar, gold, orange juice, part of a football club – but you can’t buy diamonds anywhere.

There is a reason. If you are thinking of buying a diamond, you have to examine it carefully. The first thing you’re assessing is The Four Cs: cut, carat, clarity and colour. Each of these is vital. Take clarity, for example. The diamond’s internal characteristics include features such as clouds, cavities, graining, laser lines and much else. These are often known as ‘inclusions’. Which inclusions a diamond has, and where, makes a big difference to the price. You also have to consider the symmetry, fluorescence, proportions and much else. An impossible task without carefully viewing it in person.

People increasingly ask me about purchasing diamonds as an investment. Their first question is usually, “Will I get a better return than I do on cash in the bank?” The short answer is no. If you buy a significant diamond ring from any high street jeweller, it will probably take you 25-30 years to make your money back on it.

The only sensible way to purchase diamonds as an investment is to go to a reputable diamond trader, who might sell you a diamond at the wholesale price. We all know about the dangers of using past performance as a guide to the future, but the wholesale price of diamonds has increased by between 5% and 15% every year since records began in the 1970s. My advice is that it’s probably better to spend your budget on one larger stone than two or three smaller ones. The larger a diamond, the rarer it is. As with most things, rarity makes for a better investment.

Coloured diamonds are rarer still, and we have seen yellows, browns, greens and reds coming onto the market recently. These will command an even higher price and should make a profit more quickly. Our records show that these have gone up in recent times by as much as 30% year on year.

24.78ct natural pink diamond. Amazing!! 

Pink diamonds are the rarest of all. In November 2010, Laurence Graff bought a 24.78 carat rectangular pink diamond at auction for £29million. You probably won’t be surprised to hear that this was the most ever paid for a diamond. When he was asked why he paid so much, Mr Graff replied: “To reduce my tax bill this year.” Diamonds can be almost magically beautiful, but investing in them remains a hard-headed decision.

 

 

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com

What are you doing with your cash?

Have you ever wondered why diamonds vary in price from shop to shop?

Since 1949, statistics have shown that diamonds are the only commodity that has increased year on year 15-20%. And in years of a recession, even more than that. Provided of course they are purchased at the right level, wholesale!

There have been years, when diamonds have been increasing in value by up to 40%. It is the only commodity that is not listed on the stock exchange. It is still very much an item that is ruled by big diamond house’s around the world. Most famously DeBeers who used to own and control more than 95% of the worlds diamonds. That has since been reduced to around the 35% mark.

It’s very much a supply and demand process with diamonds, and with emerging countries like India and China demanding huge amounts of diamonds each year for new found wealth, the demand is far exceeding the supply. Did you know there has to be around 250 tons of earth mined for each 1 carat commercial quality diamond found. 

Jewellery retailers are known to put huge mark-ups on their stock, and this is done for various reasons, and it’s an accepted part of the culture we live in. So buying an investment diamonds from a retailer would take many years to see any return on your investment. 

This is where Joseph Sterling are able to help. We offer a service that from as little as £2000,  you can open a diamond portfolio. I’m not talking about buying a share of a diamond, but actually owning and having the physical goods in your possession to marvel over whenever you want. As a member of the London Diamond Bourse, we have access to all the diamonds which come into the country before they are distributed to wholesalers, manufacturers and retailers, so logically we should be your wholesaler to come to.

Compare this to purchasing a luxury holiday, some Christian Louboutin shoes, or even putting your money in a savings account, and this will guarantee you a better return in years to come. And if you are looking at natural fancy colour diamonds, such as the ones in the ring above, your return could be even greater.

Lewis Malka is a recognized expert in making diamond rings as well as being a famous jeweller to the stars. All his blogs are his own opinions. He is a member of the London Diamond Bourse (LDB). You can follow him daily on Facebook and Twitter
If you would like any bespoke jewellery made, then please visit his website.

www.joseph-sterling.com | lewis@Joseph-sterling.com