What should you consider when buying/investing in diamonds as an investment?
Depending on their size, diamonds bring a return of around three to five percent annually - theoretically. In order to optimally benefit from this increase in value in practice, several points must be taken into account.
Bought wisely
Traditional jewelry retailers enjoy high, and even triple-digit, gross profit margins when selling diamonds to end customers. In order to make a smart investment, it is therefore advisable to skip this stage of the value chain as well as other middlemen and buy at a price that is as close as possible to the wholesale price of the internationally active diamantaire. As an online specialist, Yorxs gives its customers access to global wholesale prices via its diamond platform, bypassing all intermediaries.
Price index of cut diamonds by carat weight
Very different refinancing costs, labor costs, logistics costs, scaling options and of course the respective pricing policies of the diamond owners who list their diamonds at Yorxs also lead to very different prices. Diamonds with identical or almost identical quality characteristics are sometimes for sale at surprisingly different prices. This means that different stones with identical ratings in the 5 Cs ( Cut , Carat , Color , Clarity , Certificate ) and of course the other criteria do not necessarily have to cost the same. Jewelers and gemstone dealers in B2C trading, on the other hand, level their prices : they usually sell stones of the same or similar quality at the same prices and try to maximize their margins by purchasing cheaply . Yorxs does not level and therefore offers you the opportunity to benefit directly when stones are offered particularly cheaply on the stock exchange.
Since diamonds are traded in US dollars, the current exchange rate also plays a role. Of course, this requires continuous observation throughout the day. But if you would like to have at least daily input about the offers, then Yorxs offers you a price radar function. You say which diamond you want. As soon as it is offered on the platform at the price of your choice in the evening, we will notify you.
Steer
When buying diamonds, just like silver or platinum, a sales tax rate of 7 or 19 percent is due under German law. If you buy your diamond from Yorxs, the German tax rate is already included in the purchase price. A subsequent refund of sales tax when exporting to a non-EU country is possible. Read more about this on our service page: Shipping abroad.
There is also the option of duty-free and VAT-free storage in Germany, Belgium, Switzerland or other countries, including Singapore and Hong Kong. Here the tax is only due when the diamond is physically removed from the warehouse. Moving from one duty-free warehouse to another is also possible tax-free.
By the way, profits from the increase in the value of diamonds in private assets are tax-free. Please contact your tax advisor for details.
Short-term speculation or long-term investment?
Diamonds are unsuitable as a short-term speculative asset. They only develop their true value as a supplementary capital investment in a diversified portfolio with a medium to long investment period and as a “safe haven” against dangers that can arise from a galloping devaluation of money or government requisitioning of immovable assets.
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