Investment Diamond Exchanges makes diamonds more accessible
Recent developments in the diamond industry include the development of a resale market and the availability of diamonds at wholesale prices outside of the members-only trading bourses. Online diamond exchange portals enable investors to compare the prices of different types of polished diamonds. A recent study by Ernst & Young has shown that the prices of gems offered on the Waldman Diamond Company’s Investment Diamond Exchange are 6% below average international wholesale prices and 25-46% lower than online retail prices.
Investment diamonds are an attractive new asset class with potentially excellent returns, helped by a reduction in mine production and an increase in the popularity of diamond jewelry in India and China. As gold has become less affordable, diamonds offer an attractive portable alternative to wear or keep, either at home or in safe storage facilities. From 1999 to 2011, 3-carat diamonds increased in value by 145%, while 5-carat diamonds rose by 171%, according to the Rapaport Diamond Trade Index.
Online investment diamond exchanges provide a more transparent way to buy diamonds, allowing purchasers to inspect a recognized authenticity certificate, such as those provided by the Gemological Institute of America (GIA), and to compare purchase and resale prices. The Waldman Investment Diamond Exchange charges a flat 3% brokerage fee and helps investors who want to liquidate their investment to sell their diamonds on the wholesale market at minimal cost.
Alexander Waldman, CEO of the international Waldman Diamond Company and founder of their Investment Diamond Exchange, points out that diamond investing is not just about buying the multi-million dollar celebrity gems sold at auction houses. “Because of increasing demand in the Far East, small stones have increased in value by over 60% over the past 5 years. We usually guide investors towards certified diamond sized between 1 – 3 carats, which today cost between $6,000 and $60,000.”
“The accessibility and transparency of the online wholesale market for certified investment-grade diamonds has changed the game”, explains Waldman. “Our network of international brokers is available to advise novice investors, with experienced gemologists on-hand to guide them through the often bewildering language of clarity, cut, color and carat weights. If investors feel uncomfortable holding their diamonds, we offer a high-security insured custodial service at several locations worldwide, which allows investors to buy and hold their diamonds offshore for maximum flexibility.”
Waldman is currently looking to expand their international network of Investment Diamond brokers and will refer individual investors to their nearest authorized broker.