How to Buy an Investment Diamond

Wear and Enjoy it, all at a 1983 Price!

In the past five years the stock market has been on a tear. Out performing hard assets and other investments by a wide margin. At its high, the Internet was making 60 new millionaires a day. As other new economy investors gained from this boom, the diamond market benefited as buying power increased dramatically. Diamond buyers have pushed prices up based on supply and demand principals.

Introduction

Just as ancient man once used diamonds in amulets to ward off evil spirits the modern investor can use diamonds in a portfolio to hedge against political turmoil and to resist the financial ills of inflation. All of which threatens to erode accumulated wealth.  Today many Americans have taken a page from our European ancestors who for centuries quietly and successfully invested in collectible quality diamonds to carry them through perplexing times.

Words to the wise

Diamond investing is not for everyone. The investor should be aware that diamonds are not considered to be a short term trading vehicle and that money can be lost as well as gained. One should have a general understanding of the gem stone market before entering into a purchase agreement. As with other commodities diamonds have a Bid & Ask price. It is important that your purchase be made as close to the bid price at the cash market. Yes, these diamonds are beautiful to wear!

Certification

Diamonds are only the precious gems with a clearly defined internationally recognized evaluation process that allows independent verification. Thus a value for each individual gem can be as retained.  The Gemological Institute of America, European Gem Laboratory and the American Gemological Society are recognized exclusively around the globe as possessing the strictest grading standards. Every diamond you purchase, .75 carats or larger should be accompanied by a G.I.A., E.G.L. or A.G.S. certificate. These certificates add to the liquidity of your diamond. Accept no substitutes.

How a Diamond Attains Value

Diamonds are a natural resource composed of 100 percent pure carbon. They are the lightest, toughest, smallest and most valuable substance known to the human race. History is replete with examples of royalty and people of wealth surviving natural and political holocausts and making a new life because they possessed the world's most concentrated form of wealth... investment quality diamonds. DeBeers: 80% of the world’s supply of diamond rough is controlled by one organization, DeBeers Consolidated mines, a legal cartel formed in 1934. DeBeers sells diamond rough and maintains global prices by adjusting the supply of diamonds through their central selling organization. Through their long-standing control a stable and orderly market is maintained. This fact has held true during recessions and inflationary times.

Why Should You Invest In Diamonds?

Since 1934 prices have increased more than the rate of inflation thereby protecting the real value of capital. In recent years diamond prices have remained stable due to a benign inflationary period. Thereby offering solid capital protection in addition to capital growth. Diamonds are the most concentrated form of storing wealth. They also offer you financial privacy not available elsewhere. Unlike other investments a diamond investor has 100 percent direct ownership of a portable tangible asset of proven value. Diamonds require no ongoing management or upkeep. Nor do they draw property taxes or require liability insurance. Unlike commodities and other investments, diamonds are insulated from the daily fluctuations of the markets and are not as likely to reflect sharp price changes. Because the international demand for collectible diamonds greatly exceeds the supply they are easily liquidated anywhere in the world. Unlike other hard money investments, no government stockpiles diamonds and they have no control of or influence over the free market in which diamonds operate.  Should an investor so desire, investment grade diamonds can be mounted and worn.

WHAT YOU REALLY NEED TO KNOW:

In anticipation of, or during inflationary periods, the diamond investment market goes on its own tear. The diamond market outperforms paper investments while creating extraordinary personal wealth. Important ingredients that can ignite an inflationary scare are the high cost of oil, excessive credit card debt, political turmoil and the continued above average financial liquidity in the marketplace.

Today there is a new demand for investment collectible diamonds (Round Brilliant, D - H in color, FL - VS 2 in clarity). They are aggressively being purchased in the Asian markets. The last big move on diamonds started in the 1970's with buying from outside of the United States!

TO BUY SAFE, JUST FOLLOW THE A, B and C...

A. Hadar offers you an opportunity to invest in a high gem quality diamond with confidence from a professional diamond dealer who can supply you at the best possible price.

B. An investment is only as good as it is liquid. It is always best to purchase from a member of the New York Diamond Dealers Club (NYDDC). As club members, we have the ability to liquidate your diamond at any time. (The standard liquidation fee is 4%. Cash turn around time is 14 days. All transactions are kept in the strictest confidence.)

C. IMPORTANT FACTS

Certificate: A Gemological Institute of America certificate provides the most comprehensive analysis of a diamond. The G.I.A. Certificate is regarded as the "Supreme Court" of diamond grading. A diamond investor must have a G.I.A. certificate with each purchase to ensure quality of the diamond.

Carat Weight: Diamonds purchased for investment range in size from .75 points and larger. (100 points = 1 carat)

Color: G.I.A. grades diamonds as shown on the scale below. The rarest grade D,E,F,G,H represent the accepted range for maximum appreciation.

Cut / Shape: Historically, the round brilliant cut is recognized for its appreciation potential. The cut is determined by the proportions, angles, polish and symmetry. Staying within the accepted parameters, indicated below, insures maximum performance and liquidity of your diamond(s).

SPECIFICATIONS FOR DIAMOND INVESTING

Use this simple guideline to determine your diamond purchases. It utilizes G.I.A. nomenclature and represents the parameters for maximum appreciation.