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Diamonds as an investment – what is important for investors today

26.02.2024

“Are diamonds still the girl’s best friends?”The answer, of course, is yes. In fact, their circle of friends has expanded even. The financial crisis, low-interest rates, and the looming recession due to COVID-19 have shifted investors’ attention back to tangible assets, including diamonds. Since the 1960s, their value has steadily increased, with a price growth of over 1,000 percent. This speaks volumes.

Diamonds, currently the most stable tangible asset, are indispensable in times of crisis for those seeking both return and security. Investors are well-advised to always reserve a spot for these sparkling assets in the “tangible assets” section of their portfolios. Besides the arguments of security and value appreciation, several other factors make diamonds appealing:

  • Inflation Protection. Regardless of how interest rates and currencies evolve, diamonds offer value stability as portable tangible assets.
  • Anonymity in Purchase. Investors are not required to register, and there is no governmental oversight or intervention.
  • Diamonds are globally convertible. Diamonds are globally recognized as an alternative currency, adhering to a standardized valuation system, making them equally valued worldwide. This gives investors a highly flexible investment.
  • Diamonds are a tax neutral investment. Value appreciation remains exempt from capital gains or income tax after just one year, making them a maintenance-free tangible asset.
  • Investing in diamonds is considered an attractive alternative during low-interest phases and beyond.
  • The most crucial aspect of buying diamonds is their high security. Unlike currencies, commodities, or securities, diamonds cannot be easily replaced by other currencies, technologies, or competitors. Diamond reserves are limited and becoming increasingly scarce.
  • Moreover, diamonds are one of the few investments that combine usage (jewelry) with the aspect of value preservation.

Thus, diamonds remain what they have always been: “the girl’s best friend” and also the best friend of investors! They are ideal value stores to transport wealth through periods of crisis.

Buying diamonds

First and foremost, buying diamonds is a matter of trust! Investors often invest five, six, or even seven-figure amounts in this tangible asset. Therefore, security and discretion are of utmost priority. Verreaud guarantees exactly that: a 100% secure and discreet purchase process. The payment is made through a control account monitored by an external control agency, safeguarding the buyer during the transaction. The purchased diamonds are securely stored in a high-security bonded warehouse in Switzerland, subject to customs supervision. An internationally valid certificate for each colored diamond sold is essential. This ensures the investor is fully protected throughout the purchasing process until they become the owner of their diamonds.

The fact that the diamonds are stored in a high-security bonded warehouse in Switzerland, and that the purchase price is secured through a control account builds trust and demonstrates Verreaud’s high transparency standards. Through transfer of ownership, the buyer gains exclusive irrevocable access rights, allowing them to access their investment capital at any time. Additionally, various sale options provide another way for buyers to liquidate their diamonds.

Buying diamonds – starting from €10,000

While many investment offerings, especially in tangible assets, require high minimum investment amounts, purchasing colored (fancy) diamonds through Verreaud is possible starting from €10,000. Investing in diamonds is not just attractive for very wealthy investors but also for “small investors”.

Furthermore, customers can not only purchase diamonds from Verreaud but also sell fancy diamonds to them. Fair valuation, price determination, and secure and discreet processing are guaranteed in this case as well.

Thus, investing in diamonds is seen as an attractive alternative during low-interest phases and times of crisis, and beyond. Moreover, purchasing through Verreaud is entirely secure due to the transaction process via a control account and the direct sale from a high-security bonded warehouse in Switzerland.