Diamonds: manual of use to buy, sell or inherit

Like gold or oil , diamond has always been an effective instrument of power . To the point that there is also a legend that it is an infallible investment . But beware! it is not always. To properly manage the value of the queen of all gems if you inherit, buy or sell one, you have to be not only well informed, but well informed. " The world of diamonds is very complex for those who do not have a professional knowledge of the sector ”, explains Álex Enseñat, from Enseñat Heritage, who warns that“ thinking of buying a diamond as an infallible investment is an almost historical mistake ... ”.

This London-trained gemologist gives us two basic tips when you have (or aspire to have) a diamond in your hands. The first, that both to acquire and to sell you have to choose the place very well to deal with trusted professionals . And, economically, remember that, unlike gold, the purchase of diamonds is taxed with VAT , so from the outset “ buying them as an investment asset becomes difficult, unless the objective is to invest in the long term. ”.

The minimums that you must demand

But let's go step by step. The first thing to do is choose the diamond, which must meet certain minimum size and quality , and then determine its value . In terms of quality, the best, experts say, is to choose a stone that comes without a rim. "It is desirable that they have not been previously crimped because, despite being the hardest natural material that exists, there is always a minimum risk of being lashed by a bad blow", explain the brothers Rafa and Carlos Grau , managers of Rosbel and specialists in the considered queen of all gems. And as for the minimum required in size, they assure that, as a minimum, it should be 0.50 or, already put, preferably one carat.

Diamond is not the same as brilliant

This means that "in the case of a carat, we are talking about stones from 6.5 millimeters, whose initial price is 6,787 euros, if it is of a high quality ", details Álex Enseñat, who recalls that "it is not the Even having two diamonds of half a carat each than one of a whole carat ... a piece is much more valuable the larger it is - as long as it respects certain qualities - because it is also much more difficult to find large gems than small ones ”.

It also warns that a diamond is not the same as a brilliant , since the second meaning refers to the cut, which in addition to being brilliant can be pear, baguette ... "But the best is always round or brilliant" , says Enseñat, who also recalls that "every diamond has its certificate of authenticity and, if not, one must be obtained from a gemological laboratory of repute GIA, HRD or IGI".

On the other hand, a diamond can be one carat or up to ten and yet have very little value if it does not have the brightness or the minimum clarity required. "There is a color table that runs from the M / N to the D / E River depending on whether the diamond in question is of low quality or of an exceptional white", exemplifies Enseñat, who as a gemologist also remarks that "the value each piece is also measured according to its purity scale, which goes from P (for chopped) to F (from English flawless or without blemish), which is the most exceptional quality ”.

But there are also "rare" diamonds. For its extraordinary greatness; or because of its unusual color; or both, like the " Karloff ", considered the largest black diamond in the world.

The brightness, purity and size determine its price

Combining, then, the best of each scale is what will mark whether the purchase, inheritance or investment is good or not. "It will be optimal when a river diamond of exceptional whiteness is chosen that does not present inclusions or blemishes", reasons Carlos Grau. And he adds that " the size also matters ", referring to the way the piece has been carved, a chapter in which the experts give another very clear rule when investing: only the brilliant or round cut is recommended . It is with these conditions of size, purity and brilliance (in addition to that minimum of one carat) that specialists speak of quality diamonds.

When to buy? And sell?

The price of the dollar is what marks the rises and falls in the price of diamonds, which, in general, do not usually lose value. But it must be remembered that the sector has also had its crises, such as the one it experienced in 1970, when its price dropped to 50% due to excess production. That is why it is important to get the right moment both when buying and selling.

Although “they recover well from price falls and economic crises, their prices are independent of government laws and have guaranteed convertibility at any time worldwide, that is, it is an alternative currency that, like gold, is accepted with the same value anywhere in the world ”, explains Carlos Grau. And he adds that "the strength of the euro against the dollar indicates a good moment for the sale and, if the relationship of forces between currencies is the opposite, for the acquisition."

Why is it good to wait?

One of the great advantages of diamonds is that "they do not involve maintenance costs like a piece of haute horlogerie, and that the proceeds from their sale are tax-free." That is the reason why, in addition to not advising the purchase as an investment to those who want quick benefits, one must be patient and look for the optimal moment so that the purchase or sale is as beneficial as possible. A quality diamond never ceases to be a tangible asset that "can be safely kept at home to bequeath or sold as soon as necessary," Enseñat sums up.

How much does your price go up annually?

In 1991 the De Beers diamond industry "cartel" was dissolved. With what since then the price of the diamond depends on supply and demand exclusively. The good news for those who have invested in these pieces is that, according to studies by McKinsey, the mining production of these stones is slowly falling. And there are no major new mines from which to extract more to meet the demand, which continues to grow.

This has meant that "the prices of quality diamonds have increased an average of 5% per year, " says Enseñat, who recalls that "in 2013 Bloomberg announced that prices were expected to increase 6% per year until 2020." Many of those looking for alternative savings assets have turned to diamonds have relied on Defined Value Diamonds (DVD) which, in the words of its president Sean Cohen, is “an investment program that is easy to understand and accessible since everyone has access to him with the amount he can afford, which includes a range of prices ranging from $ 1,000 to $ 500,000. "

The stones almost always come from India (the only producer of diamonds until 1720), but the diamond mecca is in Antwerp . The Orthodox Jews were brought there the gems after it was discovered the sea route to India, to handle the rules of this market until a few decades ago, when precisely the Indians have become masters of three quarters of this industry in the city. Of course, “specialized in small stones”, Carlos Grau clarifies. In any case, with very rare exceptions, almost every diamond that circulates in the world has at some time been in the Diamantkwartier in Antwerp (Belgium).

The Secret of the Five Cs: Color, Clarity, Purity, Cut ... and Confidence

In this neighborhood of just one square kilometer deals are closed between investors around this stone, which can be kept as an investment in a safe, as it can star in all the brilliance of a luminous jewel. Or, and that too happens, it may end up in the gear of a dentist's lathe.

Four exchanges, 1,500 companies and 30,000 employees are dedicated to the brilliance of diamonds in Antwerp, which also has its own museum. It is the Divaantwerp, which explains in detail the rules that determine its price (discussed above) and that professionals summarize in the four C. “Carat weight or carats (weight); color, the color; clarity or purity, and cut, carving, the only characteristic that is not given by nature but by the skill of professionals ”, summarizes Enseñat.

And they are bought there, in Antwerp, or anywhere in the world, experts warn that “we must not fall into the trap of big discounts; You have to know the minimum to discard synthetic diamonds (which sometimes have a very successful finish) and, above all, you have to require the certificate, mandatory for pieces from 0.30 carats ”. And there we come to the "fifth C".

Did you know that rhodium and palladium are more expensive?

Much more expensive than diamond and gold is rhodium, which costs $ 76.57! the gram , and it is the material with which the gold finishes are made. Palladium is also very expensive, at $ 37.68 at the current price (and is also used for gold alloys), For its part, platinum, very difficult to manipulate (that is what really makes this metal more expensive), is at $ 24.09 a gram. Continuing with current prices, the price of an H / VS2 diamond (it is a quality already considered high) varies mainly depending on its size and size, so that a 0.30 gram specimen costs 600 euros ; from 0.40 it jumps to 900 , from 0.48 it would be around a thousand and from 0.50 it already reaches 1,500 euros. And if we go to a one- carat stone , the price shoots up exponentially to 6,787 euros.