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Why diamonds?

Based on their strong intrensic value, historic infatuation and non correlation to fiancial markets, diamonds should be a part of a well balanced portfolio of assets.

 

Some of the reasons to balance your assets with diamonds:

 

  • A safe-heaven investment: Diamonds have a robust intrinsic value

 

  • Stability: Low correlation coefficient to financial markets and low volatility

 

  • Medium/Long term vision: Experts and studies expect diamonds prices to rise over the coming years, hedging you against inflation.

 

  • Asset diversification: Owning diamonds is a protection against default by a financial institution

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What type of diamonds should you own?

 

Most stones are not a good choice when it comes to diamond hoarding. In order to buy valuable diamonds, there are few rules that must be respected:

 

  • Dealing with reliable and reputable industry players

 

  • Receiving reliable terms and conditions

 

  • Not buying nor investing in "paper diamonds," stones  not physically in your possession 

 

  • Avoiding diamonds under 1 carat (difficult to certify due to the large circulation of fake gems) or bigger than 3 carats (too exceptional) 

 

  • The ideal hoarding/investment diamond must have the following characteristics in order to be a tangible and fluid asset:

  • Cut: Round excellent or very good

 

  • Weight: Between 1 and 3 carats

 

  • Color: Colorless to nearly colorless (D; E; F; G and H)

 

  • Purity FL; IF; VVS1; VVS2

 

  • Fluorescence: Faint or none

 

Buying diamond while respecting those protocols and characteristics will ensure you to get a proper safe-haven resource, a real international exchange currency as well as a diversifying asset balancing your investment portfolio.

 

 

Buying diamonds by any other standards other than the one above the value of your investment is probably nothing but an illusion.

 

© 2018 by IFD Gotham, LLC

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