The phrase "what to invest in" has been one of the most frequently entered into search engines since 2019. Unsurprisingly, this is influenced by many factors, including the recent outbreak of the Covid-19 pandemic, the turbulent geopolitical situation (armed conflict in Ukraine, changing perceptions of Russia's position in the world, China's economic and political moves in Europe, the growing role of NATO, WHO, and the UN, etc.), as well as soaring inflation and customer dissatisfaction with how banks manage their savings.
All these aspects make us ask ourselves more often than ever before how to protect the value of assets and how to better secure the financial future of the younger generation.
Historically, luxury goods have consistently proven to be the market segment most resilient to economic fluctuations.
The numbers show that since 2008, the average price for a 1ct diamond has been on a steady upward trend, while according to MasterCard data, retail sales in the American market (the largest in terms of diamond sales) have increased by 8.5% this year alone, and the entire diamond jewelry segment has grown by 32% compared to 2021.
Meanwhile, the Fancy Color Research Foundation (specializing in fancy diamonds) reports that from 2005 to 2019, they appreciated on average by about 25% per year. The value of small pink diamonds increased the most, by over 500% in the last 20 years. This is closely related to their drastically decreasing supply in the primary market, and the closure of the Argyle mine in 2020, which was the supplier of 90% of their global resources, only intensified this phenomenon.
It's clear that investing in diamonds is worthwhile, but exactly what conditions must they meet, and what features should be considered to ensure the investment brings us profits, not disappointment?
Firstly, it is worth noting that today diamond jewelry, more than individual stones, is an investment appreciated by investors. Why? Because in addition to all the benefits that diamonds themselves bring, finished jewelry has four undeniable advantages:
1. Enhances social status, adds prestige
In both private and business relationships, we are often judged based on our appearance, so precious diamond jewelry will certainly be an asset in the eyes of others.
2. Adorns
The obvious function of jewelry is its utilitarian aspect - it can uniquely complete an outfit and give it an unparalleled character.
3. Serves as a dowry for future generations
It carries economic value, but also emotional and historical significance. For example, a ring passed down from generation to generation provides not only financial security, as it gains value over time, but also tells the story of specific people, evokes memories and emotions.
4. Is an investment in interpersonal relationships
Beautiful jewelry given to a loved one brings joy, moves, and gives a sense of uniqueness. This value cannot be measured by any standard.
When purchasing diamond jewelry in the context of investment, it is important to ensure it is as unique as possible. Mass-produced designs available in chain stores will not surprise us with either design or high-quality craftsmanship and are burdened with a huge price margin from the start. Therefore, over time, their value will surely decrease, not increase. Only individual pieces of unique jewels, created according to original ideas, have the potential to multiply their value over time.
The metal used to make diamond jewelry must also be of the highest quality. If we are talking about gold, it is best if it has the highest possible karat (e.g., 18K) clearly marked on the jewel.
As for diamonds, two issues are crucial. Firstly, the more unique the stone (color, cut, clarity, weight, brilliance, symmetry), the greater its value (also as a collectible). Until recently, the rule in the jewelry industry was that the higher the clarity of the diamond, the higher its price. Today, in times of a huge client need to be unique, this has changed a bit, and every, even the smallest inclusion in the stone can become its asset, as it indicates its uniqueness.
Secondly, if we are purchasing a jewel with long-term investment in mind, we must ensure that the diamonds included have the appropriate quality certificates. Only in this way can we guarantee that we have indeed purchased a diamond with the desired parameters. It is advisable for this certificate to be issued by an international gemological institute (e.g., IGI, GIA, HRD), as this will ensure ease of selling the jewel abroad.
Today, when "more" and "faster" often seem to be synonymous with "better," investing in something as luxurious as diamond jewelry, it's worth choosing pieces that are created against this trend. Jewelry that is the work of talented craftsmen, an expression of the unhurried work of designer-jewelers, and that showcases the artistry of attention to detail.
And very importantly, you can of course invest in a unique jewel that is already ready, but a great idea for a diamond investment is also to create such jewelry yourself, in collaboration with specialists in this field. Where to find them?
Undoubtedly, Diamenter, a brand whose second name is uniqueness, creates jewelry that is not only exceptionally beautiful to the eye but also very attractive as an investment. Why this brand in particular? Because it creates jewels that meet all the criteria to become the best investment—financially, but also in interpersonal relationships.
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