Which diamonds?

Which diamonds are suitable as an investment?

Colored or white (colorless), brilliant or baguette, five carats or even half a carat - ten criteria and numerous other features make every diamond unique. However, not everyone is recommended as an investment. Which diamonds belong in your portfolio?

Which diamonds belong in your portfolio? - Three possible strategies

Depending on whether the buyer pays more attention to fungibility or long-term performance, a basic distinction can be made between three investment strategies:

1.High Fungibility (Best Price/Performance)

The easiest diamonds to resell are those with the following characteristics, as the market for this type of diamond is always large:

Brilliants (round cut): The brilliant is the most popular of all cuts because it best brings out the fire and brilliance of a diamond. It is therefore most valued regardless of current fashion trends. In addition, the cut quality of a diamond must be checked based on clearly defined criteria, so that its classification is undisputed. The relatively high amount of material lost when cutting a diamond makes this shape even more valuable.

GIA certified: GIA is the largest and most important certification institute in the world. (HRD has the same rating quality, but GIA stones are currently selling a little easier due to GIA's greater popularity.)

0.5 to 2 carats: The demand for stones of this carat weight is the highest worldwide.

“Top Commercial Quality,” which means:

  • Cut , polish and symmetry: Very Good (VG) to Excellent/Ideal
  • Fluorescence: “none” to “slight
  • The diamonds must not be “enhanced”, that is, in particular, not have their color and/or clarity improved through an HTHP (high temperature high pressure) process. Possible “enhancements” are explicitly stated on GIA certificates. Yorxs only offers untreated, natural diamonds. Treated diamonds are excluded from the Yorxs platform.
  • Color: I (slightly tinted) to F (river/very fine white)
  • Purity : SI1 – VS1

2. Focus on value stability (top quality)

Diamonds, which achieve top values ​​in all areas, achieve the highest value stability with slightly lower liquidity because they are even rarer. However, the market for these stones may be tighter. Essentially the same criteria apply as under 1 (brilliant, GIA certificate), but with the following upward deviations:

  • Carat weight: 1 – 3 carats
  • Cut, polish, symmetry: Excellent/Ideal in each case
  • Fluorescence : None
  • Color: F-D
  • Purity: IF/FL

3. Big stones, big price increase

Another investment strategy is to invest in large quality diamonds (over 3 carats). These have experienced the highest price increases in recent decades, but are also not as fungible as smaller diamonds, not least due to their correspondingly higher individual price. Recently, prices for diamonds of this size have been falling, but this is not an unusual trend. Large quality diamonds are collector's items, the market for them is small and there is room for price fluctuations. For precisely this reason, however, potential profit margins are very high, especially compared to smaller diamonds, which usually experience stable and moderate growth rates: While the prices of one-carat diamonds rose by around 5 percent between 2006 and 2010, five-carat diamonds rose by around 5 percent between 2006 and 2010 Increase in value of around 17%, almost four times as well developed.

Price development of cut diamonds by size

When purchasing such large stones, as well as colored diamonds, it should be noted that these diamonds are not mainstream goods: This means that certain wealthy individuals are - often depending on current fashion trends - willing to pay very high prices for these stones. However, the number of players in the price and market segment is small. There is therefore a risk that the stones will be difficult to resell.

Conclusion: If you value a fungible asset, a diamond with a size of one to two carats is the “safe” option. Larger or colored stones are less fungible, but offer greater increases in value.

Our team is there for you!

Dear website visitors and customers, do you have any questions, requests or suggestions? Please call us
(Tel: 0800 8880770)
.

You are also welcome to contact us at our email address (service@yorxs.de) .

We are available for you from Monday to Friday from 10 a.m. to 6 p.m. and Saturday from 10 a.m. to 3 p.m. Talk to us - we are always happy to help you.