Dispelling the Myths of Diamond Investing
When it comes to investing and saving for the future, many people are skeptical about where they put their money. Most people readily admit that they don’t understand the stock market, and often times those who do bestow little trust in it.
While the days of stuffing cash under the mattress may be gone, people still want a tangible asset, and one with appreciation potential—an asset that they can physically possess and hold in their hand.
One such asset that’s hitting the radar around the country is investing in diamonds, but there are many things people don’t understand about investing in them.
“Considering the perceived complexity and history of the diamond industry, it is understandable that people feel they need to learn more, and dispel the myths,” explains Sean Cohen, president of Van Zwam, the home of Defined Value Diamonds (DVDs).
“We have worked to bring diamonds into the 21st century information era, answering questions and countering concerns by developing an easy to understand diamond purchase and investing program, the DVD, that everyone can afford.”
People have long been fans of diamonds and those who know investing know they have been a solid investment for quite some time. Beyond having them for jewelry purposes, they offer tangible wealth options for those who want to help secure their future.
Diamonds offer people an investment they can keep in their home, hold in their hand, and pass down as an heirloom.
Here are 7 of the most common myths when it comes to investing in diamonds.
Myth: Diamonds are controlled by one group and only one group.
Truth: At one time, diamonds were controlled by the De Beers group, but that was brought to an end in 1991 with anti-monopoly laws and straight business logic. Today, there are a number of diamond miners, and the quantity and price of diamonds is based purely on mined supply and the demand for them.
Myth: Diamonds are not rare.
Truth: All mined diamonds are sold, there are no major stockpiles and their price is a pure supply-demand market price. According to recent McKinsey studies, diamond mining production is slowly dropping and there are no new major mines on the horizon for the next decade or more. All while global wealth and engagements are increasing.
Myth: If you want a good investment, stay away from diamonds.
Truth: Diamond mine production is slowly declining and global wealth is growing. DVD quality diamonds have gained on average a 5 percent value per year for over a decade.
According to a 2013 Bloomberg article, it is estimated that they will continue to increase up to 6 percent per year through 2020. Since the dawn of human civilization, diamonds have been a store of wealth, financial insurance and a good long term solid investment.
Myth: It takes a lot of money to invest in diamonds.
Truth: Most people can afford investment grade diamonds. With the DVD program, people can invest the amount that they are comfortable with. DVD diamond discs, which range in price from $1,000 to over $250,000, offer many people a discreet way to invest and retain wealth.
Myth: People should be diamond experts to invest in them.
Truth: You don’t need to be a diamond expert to understand a diamond’s value, nor to obtain a DVD diamond and secure it for the future.
The DVD program allows people to purchase high-quality investment-grade diamonds at market wholesale price—the finished polished price is called the Polished Trade Price (PTP)—set in lightweight stainless steel and glass display discs. Investors can choose the size and value of each diamond, ranging from .50 carat to 3 carats. DVD diamond discs hold up to three diamonds. Each DVD diamond’s value characteristics including its Triple Excellent cut grade are fully vetted in its GIA grading report. Each also comes with its Gemprint ID, the unique fingerprint for that diamond.
Myth: It is difficult to determine the current value of the diamonds and keep up on it.
Truth: Each DVD disc has a serial number that identifies its diamonds. Investors can call the toll-free number at any time to get an up-to-date valuation of their diamonds.
Myth: There are better things to invest in.
Truth: The safest way to invest is to diversify, and investing in diamonds does exactly that. Plus, rather than having all an investor’s money tied up in something they can’t touch, diamonds are a tangible asset in their physical possession, available as soon as they may need them.
They are also indestructible, so investors don’t have to worry about losing their money, as can happen with paper/electronic wealth, for example with the stock market or banks.
“Diamond investing is increasingly becoming more popular, because it’s a low downside risk option and one that nearly everyone can get into,” added Cohen. “No longer are diamonds just a girl’s best friend, they are now becoming an investor’s best friend, too.”
The majority of DVD customers purchase their DVD diamonds to give as heirlooms and gifts to their spouses, children, and grandchildren. DVDs makes for an unparalleled gift, because giving the gift of an investment grade DVD diamond not only expresses love and brings them joy, but provides them with a secure investment for many years to come.
All DVD diamonds are ethical diamonds and inspected to meet a tighter standard of quality than the GIAs. Each diamond is hand-selected to ensure that it is the size, quality, and type in constant global demand—highly stable, high quality, and of great value.
The price of DVD diamonds are the global PTP, the same price top-end retailer’s pay, which is up to 60 percent less than the price of the same diamonds in jewelry. For more information on the Defined Value Diamonds asset, visit their site at:www.dvddiamonds.com.