The real and honest investment

Diamonds as an investment

Diamonds as an investment are characterized by stable value development, a stable market environment and low price fluctuations. As an owner, you protect yourself from inflation, banking or stock market crises and even currency reform.

All you need is a little secure space and a trusted transport, diamonds can be sold worldwide provided they are certified by one of the four most important institutes. The expected annual performance for diamonds is an estimated 6-8 percent over the next few years.

The main features at a glance:

  • Diamond prices are largely stable - oligopoly of large sponsors such as DeBeers, ALROSA, RioTinto etc. = stable, steadily rising prices
  • Diamonds are the most mobile material asset - a lot of wealth in a small space, 1 carat = 200 milligrams (10kg gold = approx. 4 carats)
  • Diamonds are convertible anywhere in the world once equipped with an internationally recognized certificate from one of the 4 recognized institutes
  • Diamonds have no ongoing maintenance costs and no significant ongoing operating costs
  • Diamonds are tax-attractive - profits from private sales are tax-free (depending on your country, some expect a minimum holding period of 1 year or less)
  • Diamonds can also be bought anonymously in cash within the framework of legal requirements - there is no official reporting requirement for diamonds

The 5 C´s

At the international congress of the World Association of Diamond Exchanges and the International Association of Diamond Grinders, a committee was founded in Amsterdam in 1975, which established uniform guidelines for the evaluation (grading) of cut diamonds.

Since then, the International Diamond Council (IDC) has been issuing a set of rules and graduation standards that are internationally recognized - succinctly titled as the 5 C’s: Carat, Color, Cut, Clarity and Certification.

The fifth C means the following: our products ALWAYS have an official certificate from one of the highest recognized bodies. Do not buy any gems or precious metals without one of the certificates listed below:
  • IGI - International Gemological Institute
  • HRD - Hoge Raad voor Diamant (Certificates can even be seen online)
  • GIA - Gemological Institute of America (Certificates can even be seen online)
These stones are qualified according to UN resolutions and fully correspond to the description. The Certification is a kind of identification document. In addition, the stones are blistered and lasered, i.e. they have the invisible number of the certificate and the latter expires as soon as the blister box is damaged.

Kimberly process – certification of diamonds

Today the trade in real diamonds is monitored following the "Kimberly Process".

And the success speaks for itself: for decades already, this has prevented diamonds from being used to finance exploitation, wars or conflicts. Non-governmental organizations such as Global Witness regularly review the measures.

In order for a real diamond to be created, many factors in nature have to interact perfectly. A diamond takes millions of years to be created – if this value was simply copied and bought without a certificate, millions of people had to lose their livelihoods indefinitely.

In this respect, the “Kimberly Process” also has a very important social function but also ensures peace of mind in your real asset ownership.

Diamond-Index – negative correlation to equity markets

Similar to gold, diamonds are always of particular interest to investors when the stock markets are going down. We use the so-called Rapaport index for comparisons. Following these expert findings we can see clear and sound steady price increases for cut diamonds. This is especially the case with stomes weighing between ½ and one carat.

In years, however, in which the global leading share index Dow Jones as well as the German leading index DAX fell sharply in value (financial crisis, worries about national debts in Europe and the USA, interest rate and inflation fears), the diamond index had risen sharply again and again.

As a result, diamond prices are much more stable than the fluctuating gold value. This is due, among other things, to the increased interest in diamonds worldwide and an increasing scarcity. Unlike gold, for which the price is simply calculated according to its weight, the values of diamonds result from four properties, the five C's. And diamonds hardly ever make it back into the production market since you cannot meld them.

How do I recognize a fake?

There are numerous methods of verifying a diamonds authenticity. We at Reale-Werte and our associated partners do only sell well cut diamonds certified by a renowned institute with a clearly verifiable origin. And we only consider buying back corresponding diamonds.

We would be happy to send you a brochure with the 10 most important features when identifying real diamonds. Please mention the terms “brochure detection of real diamonds”.

Get to the contact form

Upon request, we will call in an independent expert to check the goods. In principle, however, it is sufficient to check the certificates and the invisible numbers attached to the goods. To be on the safe side, you should find out about the actual market value of your goods before buying them.

We only offer diamonds with certification from one of the world's leading institutes (“Kimberly Diamonds”). If you decide to buy outside of Real Values, please note that offers "that sound too good to be true" are usually an fraudulent attempt. This can also be the case with sales offers that initially appear serious but which turn out to be without or only with bad certificates etc.

So if you should have any doubts about the authenticity of the goods, you should rather forego the purchase and contact us to purchase a verifiably secured, certified and genuine product.

Artificial and man-made diamonds – Are they an alternative?

Diamonds do not necessarily come from mines - In March 2017, a 155-carat 92 millimeter diameter artificial diamond was produced for the first time - this is one of the largest man-made diamonds ever. However, such diamonds are less intended for investors and enthusiasts, but z. B. for high-performance electronics.

It is unthinkable that a diamond dedicated to a woman should turn out to be “artificial”. The result would be nothing less than the opposite of what the gift was supposed to express.

Artificial diamonds have the same properties as natural diamonds, but are on average 25 - 50 percent cheaper - with a sharply falling price trend!

This is the ongoig case because these “stones” can be reproduced any number of times - theoretically to the point of complete worthlessness.

Sometimes the difference can only be determined in a laboratory. The authenticity of diamonds is certified for us and you by the 3 leading institutions such as Hoge Raad voor Diamant (HRD) or Gemological Institute of America (GIA).

After all, nowadays a large supplier from Austria with a Russian name must clearly disclose its "art objects" as glas. He has to mark his stones with an engraving that is visible under simple microscopes. Laboratory diamonds must also be identified as such in their documents – if they have any. And all this allows only one conclusion: fake diamonds are completely unsuitable as an investment.

Are raw diamonds an investment?

No. Raw diamonds are almost always a scam to ordinary investors without professional assistance and equipment. Even simple glass crystals can deceive savvy private investors. And you should not take responsibility for crimes.

Is buying jewelry an investment?

NO. Jewelry is an individual matter to the highest degree and ALWAYS means losing money once sold immediately straight after a purchase. You are buying the intellectual input of the seller. So once decided you want to create value also in financial terms you better first select your desired diamond loosely one at a time.

Never buy a diamond as part of jewelry, e.g. in a ring. Especially not online without certificate and proof of value. It is then completely impossible to keep control over the quality of the cut, the weight, the color or the fluorescence, hence the fair price. It is then impossible to tell whether the stone or the certificate have been exchanged!

If you buy from us, we can lead you through each step of quality control.

So why not have your naked stone turned into jewelry instead?

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