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YOUR FINANCES
Are Diamonds good
investments?
byJULIA WILLIAMS
The answer is ‘yes’!
DIRECTOR
Diamondology
Diamonds have captured people’s imaginations and say this was with the view of ‘commoditising’ diamonds just
emotions and marked our most special occasions like gold. ‘If you have access to the right diamonds at the
since they were first discovered. When we give or right prices and are willing to hold on to them for the long
receive diamonds we know how excited and happy we term, today’s competitive prices can translate into
feel but can we also make good investments out of tomorrow’s profits, he said.
them, especially in these troubled financial times?
It is a question that I’m often asked, even more so as ‘Savvy people have been investing in diamonds for years.’
people are looking to put their savings into something He like others have golden rules which I fully agree with and
solid rather than a dot on a screen. The answer is yes, which are listed below. This tracking of the market is seen by
but like any investments it comes with certain risks those in the industry as both good and bad for the diamond
and golden rules. trade, but what it does mean inevitably is that there is more
information about the value of diamonds available than there
History is full of examples of times of hardship and recession has ever been before. This can only be a good thing for
where one of the first things people do when facing a crisis is buyers and sellers alike, provided it is used in the correct way.
to get hold of their gems and jewellery
and use them as forms of transferring Diamondology’s Top Tips As a result, the comment most often
wealth. The Russian Revolution is a prime
1. Know you diamonds. Understanding the 4
made is, where is the romance, magic and
example. The Grand Duchess Vladimir, C’s of diamond grading and a diamonds’ creation of memories in all of this? Does
the last Tsar’s aunt, sent Albert Stopford
value is key.
emotion get in the way of investment? The
an expert in object d’art to the Russian 2. Certification. Ensure your diamond is answer is often yes. Are you buying
palace to retrieve what she couldn’t bring
certificated by a reputable (such as a GIA)
diamonds for investment or for emotion?
out with her when she escaped. She later
gemmological lab.
Both can be achieved as long as you fall
passed them on to her children in
3. Emotion or investment? Be sure you know
madly in love with a good investment!
stunning collections. Gathering in her
in your own mind why you are purchasing
precious gemstones was her first priority
this diamond
What should you know before you go down
in ensuring that her wealth was secure.
4. Enjoy the whole process. Choosing your
the investment route of diamonds? In my
investment diamonds is a thrill, as you take
ownership of something that is beautiful, a
opinion Education, Education, Education
Without the threat of revolution
rarity and unique piece of nature that can
rings true in this field as much as in any
triggering this need, how about in every be enjoyed for generations to come. Also other. The internationally recognised
day life? If we look at the auction
knowing that you are securing your wealth
language of diamond is a must and the 4 C’s
houses there are examples aplenty of
in something solid.
(carat, colour, clarity and cut) and then
pieces that have been bought and then accompanied by what I consider to be the
resold years later at vastly increased
Julia Williams
most important new ‘C’ - certification. As a
prices. A three strand black pearl
Julia Williams is a GIA diamonds graduate
graduate of the Gemmological Institute of
necklace sold in 1969 at Christies for and has owned Diamondology for the past 5 America, I put a G.I.A. gemmological
$134,883, was then resold in 1997 for
years offering expert diamond buying advice
certificate at the top of the list.
a cool $913,320. In more recent times
and bespoke jewellery creations.
the highest price ever recorded for any
Diamondology is based in Lion Park,
St. Lawrence and Broad Street, St. Helier.
Also do your research! Compare like for
gem was achieved in December 2008, like values before you buy as you would if
in the midst of the financial crisis. This was for the you were buying anything else. Other factors you must
Wittlebasch blue diamonds of 35.56ct which was sold for consider before you start include any additional costs such
$24.3million, hugely surpassing its $15million estimate. as insurance and storage costs.
However we are not all so lucky to be in the market for a But overall diamonds are the most beautiful gemstone on this
$24million diamond. What about our more modest planet and they will always be synonymous with our most
purchases? One man who knows more about the value and romantic gestures and memorable moments. As technical
changing value of diamonds over the past 30 years is information becomes more available and a more accessible
Martin Rapaport. He has tracked the market value for global market opens up, any diamond buyer should use this
diamonds over the past 30 years and made this to their advantage to add to the buying experience rather
information available to the general market. In fact some than a detraction from it.
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