‘You could pay double buying diamonds through a jeweller’: How to invest in a gem and beat the mark-up

By Toby Walne for The Mail on Sunday

Buy Natural Diamonds

Published: 22:57 BST, 2 February 2013 | Updated: 13:25 BST, 4 February 2013

e-mail

8

Buy Blue Diamonds

View
comments

If you are looking for a rock-solid investment, be wary of the most impressive rock of all – a diamond.
While the precious stone may be a girl’s best friend, as an alternative investment diamonds should be treated with caution.

Diamond trading is an unregulated market that is hard to crack for private investors. Even insiders often disagree on specific qualities and values, partly because no two diamonds are exactly the same.

Where To Buy Manufactured Diamonds

Despite being seen as an expensive luxury, the value of the best one-carat polished diamonds fell 12. But over the past decade they have risen by 53 per cent.

Where To Buy Diamonds In Dallas

‘They can charge at least double what diamonds may cost on the wholesale market. The door is firmly closed to any industry outsiders.’

Dominguez believes the best way to invest in the gem market is through a diamond trader. He recommends visiting them. Viewing their diamonds before taking the plunge.

More…

Buy Pink Diamonds

Twinkle, twinkle: Astronomers reveal the diamond covered planet twice the size of Earth

Queen of diamonds: Together for the first time, the royal gems all cut from one legendary stone

Dominguez says anyone investing in diamonds should buy (related) at least £5,000 worth and keep them for five years. Unfortunately, some certificates are worthless.’

A FEW GEMS ABOUT THE PRECIOUS STONE

Most diamonds are found in kimberlite – a hard volcanic rock. They were created under huge pressure up to 120 miles underground more than a billion years ago. Are carbon minerals turned into the hardest naturally occurring substance.

Best Place To Buy Diamonds In The World

– The biggest diamond ever found was a 3,106.75-carat (621. It was cut into seven major stones and 96 smaller ones.2-carat) and the Imperial State Crown (317.4-carat) for the monarch King Edward VII. It is valued at £50 million. The 24.

Investors also need to factor in the cost of security – possibly keeping gems in a piece of jewellery to enjoy until it is time to sell. Diamonds should be a specified item on home and contents insurance. If you make a gain on the investment – and the diamonds are worth at least £6,000 – there is a minimum 18 per cent capital gains tax above the £10,600 annual exemption.

Exposure to diamonds is relatively limited.

Investors might also be tempted to invest in a stock market-listed firm that has interests in diamonds as well as other businesses.