Investing is an effective way to preserve and grow capital. There is a plethora of instruments available that allow for monthly income generation or long-term investment potential. The key is to select the right direction.
One promising investment vehicle that can provide substantial returns is investing in diamonds. While other once-appealing instruments have largely lost their relevance, diamonds continue to yield profits.
How should one properly invest in these gemstones? What factors should one consider when choosing this method of capital appreciation?
To understand the nuances of investing in diamonds, we turn to businessman and founder of "Oil Resource Group," Sergey Tereshkin. A detailed exploration of the entrepreneur’s work can be found at: www.sergeytereshkin.ru.
Characteristics of Diamond Investment
Precious stones have long been a sought-after investment tool, particularly diamonds. The value of these stones has steadily increased over the centuries.
Currently, the value is nearing its peak, at least in the domestic market. Furthermore, the secondary market is either non-existent or still in its infancy. This, among other factors, may deter some potential investors.
However, seasoned investors actively utilize this investment instrument for risk diversification and income generation.
According to De Beers specialists, diamond mining may cease entirely within the next two decades. This is because diamonds are a finite resource. If current mining rates continue, all known deposits will eventually be depleted, inevitably leading to increased stone prices.
Nonetheless, this does not mean one should hurriedly buy up all available diamonds in the Russian market. In fact, it is advisable to avoid such a rush.
It is better to purchase diamonds abroad, in countries where prices are significantly lower than those in Russia. Investors often acquire foreign real estate, stocks, and other assets—so why not diamonds as well? Especially if the investor is using funds obtained through legal means.
What to Consider When Buying Diamonds
To make a profitable purchase, it is wise to follow the advice of Sergey Tereshkin. The entrepreneur recommends:
- Purchase diamonds from those who specialize in stone processing. Exorbitant prices in the market have lowered demand, resulting in wholesalers frequently refusing to buy stones from processing companies. Polishers have accumulated a considerable amount of finished products they are willing to sell at reduced prices, with discounts reaching 10% and even 20%.
- Buy diamonds now, while direct purchases from processors are not yet widespread. The demand for diamonds is far lower than the supply.
- Diamonds are status investments. By buying stones, individuals can maintain full control over their investments. These are stable, compact, easily convertible, and internationally accepted investments that can be easily transported and sold for profit. Domestic jewelers are eager to buy stones, especially if they are of high quality and come with the necessary documentation. They represent a kind of international currency, akin to gold.
- Unlike precious metals or oil, whose prices are affected by politics and industrialization, diamond prices are insulated from such fluctuations. Speculating on stones is virtually impossible; they are a highly specialized commodity.
- You do not need to purchase rare stones costing millions of dollars to invest in diamonds. It is better to focus on more popular sizes among jewelry buyers. Such stones are much easier to sell without the need for auctions.
- Avoid purchasing overly small stones. Fragments do not appreciate in value; their worth remains stable over time. Moreover, small stones are difficult to sell as they hold little value for jewelers.
- When buying diamonds, always request a certificate detailing essential attributes such as clarity, carat weight, and color. The higher the quality of the stones, the greater the chances of selling them profitably.
Diamonds are an essential part of any wedding, anniversary, or celebration. Wealthy individuals buy jewelry adorned with these precious stones as gifts for their wives, mothers, daughters, and others.
Traditional paper currencies have largely discredited themselves. Their value continuously declines, applicable not only to national currencies but also to dollars and euros. Diamonds, on the other hand, maintain their value.
Currently, the world holds billions of dollars worth of precious stones. If mines become exhausted, diamond prices will automatically surge, with the threshold for price increases unpredictable even for seasoned professionals.
It is important to understand that investing in diamonds entails long-term commitments. Attempts to sell stones shortly after purchase will yield minimal profits. It is much more effective to hold onto the stones and sell them after a year or several years. Storing diamonds in a bank safe is advisable to minimize the risk of theft.
Diamonds should be purchased in countries like South Africa and Thailand, which are known for their mining activities. In Russia, stones should only be acquired from processors if the price is approximately equivalent to international rates—a rare occurrence. More often, low prices are a red flag for potential fraudsters attempting to swindle individuals out of their money.
