A diamond is forever, but now it’s best
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| 2013 - Number 6
| November 2013 | 5089 Views | with No Comments

2013-N06 InvestoLuxury
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It is said to last forever. That is the girls’ best friend. For sure it has always been the symbol for luxury, appearance and beauty in general. Diamond is all this but it is also more: especially in times of uncertainty like the ones we are living a diamond could also be a good investment, safe and protected from any bad surprises, with a pricelist fearless of any earthquake and a demand that, around the world, does not seem to end and to be, in its own way, greedy. In the past few weeks diamonds, but not only them, were the main actors of the EuroMineralExpo, an industry trade fair hosted in Turin. An opportunity to take stock of the situation in the industry, but also to explore new tastes and trends. Because diamond is only the tip of the iceberg in the world of precious stones. Interesting solutions, unknown and not appreciated, are often hidden behind it. “A diamond is always a diamond. As a jewel or as a collector’s item or even as an investment”, admits Giovanni Lombardi who as an unmistakable accent from Tuscany and a great knowledge both as an insider that as a geologist and simple lover for mineral and precious stones. “It is the stone par excellence, the most wanted and famous both for its beauty and worth. With no doubt it is the most requested item in the industry that, thanks to its safe pricelist that does not suffer from repercussions from the market, represents a very good safe-haven asset”. There is a non-negligible detail: at the present the diamond price list is set n dollars which is a benefit for the European market thanks to the exchange system compare to the Euro. And that is not all. Diamond is an asset less bulky compared to other capital investments. “It has great value in a small space – says Lombardi -, let’s think for example at the purchase of a real estate. Furthermore, compared to houses, it has a lower tax rate. You pay the VAT at the time of purchase and that’s it, no other taxes. And it does not deteriorate or needs any particular maintenance. Unlike gold, whoever chooses to invest in this field might need the help of a professional in order to avoid any surprises”.

 

But what is the budget to invest in diamonds? Not too much, as guaranteed by experts. Twenty thousand Euros can be enough. The choice then is for the item to purchase: one piece worth few carats or many small pieces worth half carat? The second one, no doubt about it: “It is easiest to place on the market smaller pieces – adds Lombardi – than a big piece. Just think of the most vibrant markets right now, like the Emerging Countries and the so called new riches. If Arabic and Russians choose pieces worth few carats, even with different taste and expertise, in different areas like China, where a new wealthy social class is emerging, the demand for smaller pieces is higher. And given the population numbers, it is very simple to rake up all the small diamonds from the world markets increasing their value for the sellers.

 

But, as mentioned before, investing in precious stones does not mean to invest only in diamonds. There are alternatives worth to mention. All you need is to have the courage to do something different. “On the Italian market sapphire, ruby and emerald are strong – adds Lombardi – . But with different trends: if the emerald is losing appeal, the sapphire is coming up strong as it was worn by Princess Kate for her weeding with Prince William. Trends are important in this field. But there are some emerging key players often left on one side by operators. I am talking about the garnet group, like the Tzavorite, a gem discovered in Kenya and Tanzania, similar to emerald but more resistant and more suitable to create jewels. At the moment the Tanzanite is quite popular: very similar to sapphire and found, up to now, only in Tanzania. It costs less than sapphire and thanks to its characteristics it can change color from blue to purple. The only problem is the seam it is extracted from: it may last no more than the next ten years”. But it is not a must have stone, watch out. Because, once again, it will follow the logic of the market. “A stone should be rare, but not very rare, otherwise it could became a collector’s item and not a product with a market and an attractive value for those who owns it”.

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