Diamonds/ Precious Gem Stones Investing?

[BULKING_N]

Been a long time I posted but I recall a post on investment diamonds. Been on a recent cruise and also sat down to a diamond and gem seminar which, my folks have a fondness for.

How good is it to invest in diamonds and precious gem stones since they generally go up and up in value from some of the worlds reputable gem stone houses? Is it a good idea and have it stored in a bank's safe . Money de values over time but I figure if I can have some investment in diamond or two over time, it be worth it? Anyone has done this.

stealth

 

[Big A]

I like diamonds. Other gemstones are not good in my opinion, as there are too many opinions out there, while diamonds are constant.

The great advantage of diamonds is that you can have millions of $ worth in the seam of your jacket if you wish or if you need to go through customs, etc.

I personally love rare diamonds - I have a number of blue diamonds, as well as some red ones and my prize is a colour change diamond.

 

[BULKING_N]

Big _A,
Wow. those coloured diamonds are rare indeed. trhe blue ones got traces of cobalt in them I believe but arent some of them like the Panther pink Diamonds colour treated?

Well I like gem stones as well , coloured ones but I will have those for my own sakes and not for investing. Alexandrites and the new ammolite from Canada is extremely rare.

If you can get your hands on the new 88th cut diamond, its pretty neat.


My only problem Big A, how does one go about 'cashing in' the diamond when or if needed?

 

[Big A]

Big _A,
Wow. those coloured diamonds are rare indeed. trhe blue ones got traces of cobalt in them I believe but arent some of them like the Panther pink Diamonds colour treated?

I am not talking about colour treated diamonds - those are dirt cheap.
I am talking about natural coloured diamonds - for example, they find an average of 5 blue diamonds per year in the world, and only 3 colour change.
A flawless heart shaped 1 ct blue diamond is US$800,000.

My only problem Big A, how does one go about 'cashing in' the diamond when or if needed?

Investment quality diamonds (D colour and flawless) are as good as cash, the way pure gold is.

 

[Big A]

Why is it that when u buy a ring you can only sell it for half what you paid for it???

The real price of a diamond is 10% of the retail price.

 

[Shooter]

The real price of a diamond is 10% of the retail price.

then as an investment, what is their value?

 

[Coopie]

The problem with any non-exchange traded investment (other than real estate) is liquidity. In theory, the only time you'd liquidate an investment is when you need capital. Well, how do you liquidate your investment when there is no fair marketplace to do so? Retail gemstones go up in value - there is no inerent value in investment-grade gemstones (diamonds included) because they have no potential to make it to market - they're an investment.

Buy stocks, buy bonds, buy real estate, buy futures for an investment
Never buy presious metals, commodities, options, or gemstones as an investment.

Hobby? Okay - but not as an investment!