Further diversify your portfolio with loose, top-quality melee diamonds, and take advantage of this flourishing market.
Buying physical diamonds at wholesale for investment purposes isn’t the first thing that comes to mind when discussing these shiny stones. Diamonds are typically associated with jewelry – an adornment to mark a significant life event like marriage, or some other special occasion.
But when it comes to buying loose diamonds for investment purposes, the standard response might be one of downright bewilderment.
“Never did I think that I could invest in physical diamonds like I do gold and silver…” is a statement we’ve been hearing over and over since we began offering diamond bullion melee for sale at ProvidentMetals.com. We’ve developed this page to help you better understand why loose diamonds are one of the best tangible investment alternatives available today.
Why should I buy loose diamonds?
Similar to gold, silver and other precious metals, the potential for diamond investing lies within the fundamentals. Here are a few vital indicators that suggest physical diamond investing is a prudent way to further diversify and grow your holdings.
- Earlier this year, a diamond-backed Exchange Traded Fund (ETF) was unveiled and has been off to a solid start. Other investment funds focusing on diamonds are being considered.
- Diamond jewelry has served as the most recognizable way to store and display wealth for generations. Although less ornate, investment diamonds have often outperformed traditional assets for the last 50 years.
- Besides jewelry, diamonds are also widely used in different industrial applications, including diamond-tipped drill bits, specialized windows, lasers, surgical equipment and more. In fact, 80% of the world’s diamond production is used for industrial purposes.
- Mine supplies are roughly flat. In the long-term, they’re declining.
- According to Matt Manson, CEO of Stornaway Diamond Corp., 15-20% of future diamond demand will be investment-driven.
What are detractors’ concerns?
Like anything, there are others who warn against investing in loose diamonds. They cite past schemes (1980s) offering diamonds for investment, and raise concerns that novice investors will be confused between diamonds for jewelry, and diamonds for investing. This confusion can lead someone to pay retail for a fine-cut stone, rather than wholesale for high-quality, yet unrefined diamonds.
Another big concern, and question, about diamond investing is valuation….which can be challenging for some. The four C’s of diamond grading combine to provide one universal pricing tool, but we don’t rely on just the subjective 4C’s grading scale. Pricing guides from reputable sources like Rapaport, Troy Diamond Report, PriceScope and other recognized indexes can be very useful as well.
What to keep in mind…
Like gold and silver coins, you can overpay, which is why we recommend you buy loose diamonds from a reputable dealer selling them at wholesale. Buying diamonds at your local jeweler is a common mistake – these diamonds are priced much higher since they require cutting and shaping.
Only look for diamonds that are clearly for investment purposes – in the event you decide to, you should be able to easily sell these gems for a profit since you’re purchasing them at non-refined, wholesale prices.
ProvidentMetals.com is in fact the first and only precious metals dealer to offer loose diamonds for sale. Our initial release of one carat diamond bullion melee products includes 3 different grades of diamonds, and we’re planning to expand our offerings. Each order comes safely enclosed in a Certicard security case for long-term storage and protection.
And to show our commitment to the future of diamond bullion investing, each Certicard comes with the signature of our CEO, Joseph Merrick.
We invite you to check out our more extensive piece on investing in diamonds to learn more. And we always welcome questions, so please feel free to contact us through email, Facebook & Twitter, or toll-free weekdays at (800) 313-3315. Click the links above for current inventory and pricing. Our secure online ordering system allows you to place your order anytime day or night.