Thrifty Thinking: Myths and Truths About Investing in Diamonds

Many people are concerned about investing their money in the stock market. Not only do they not trust it, many don’t understand how it works. Even those that do are concerned about putting all of their money into paper. Increasingly, people are looking for alternative assets to save and invest for their future. One tangible asset that is gaining traction and getting second looks is diamonds. But there are many myths about investment diamonds.

“Many have heard statements like, diamonds are controlled by a cartel, and diamonds are complicated and difficult to understand,” explains Sean Cohen, president of Van Zwam, the home of Defined Value Diamonds (DVDs). “That’s one of the reasons we developed the DVD diamond, a diamond investing program that is easy to understand and accessible to everyone.”

Over decades, diamonds have had a track record as a solid investment, as financial insurance, and compact tangible wealth. For these reasons, many people are now taking a hard look at them for reasons beyond jewelry. Today people are increasingly investing in diamonds to have a tangible and resalable asset that is in their physical possession. It’s something they can hold and secure right in their home or pass on to family.

Here are 7 of the most common myths and truths regarding diamond investing:

Myth - Diamonds are controlled by a cartel.
Truth - Since 1991, under EU and US law the De Beers stronghold on the diamond industry was dissolved. Diamond pricing today is purely a function of available supply and demand.
Myth - Diamonds are not rare.

Truth - All diamonds mined 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 - Diamonds are not a good investment to consider.

Truth - Diamonds have been a solid and enduring investment since the dawn of human civilization. Many wealthy investors have already acted on this. In 2013, Bloomberg announced that diamond prices were expected to increase 6% per year to 2020. Going back a decade or more, including the great recession, DVD quality diamonds have risen, on average 5% per year.

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 $500,000, 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 diamonds 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 (PTP), set in an elegant, 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 holds up to three diamonds. Each DVD diamonds 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 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 tangible and at their fingertips, available as soon as they may need them. They are also indestructible, so investors don’t have to worry about losing their money, like what can happen in the stock market and bank.

“Diamond investing is increasingly becoming more popular, because it’s a low 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 them 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 higher 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.

About Van Zwam

As a wholly-owned subsidiary of Rand Diamond whose principals have collectively bought and sold over $1billion dollars’ worth of diamonds, Van Zwam developed Defined Value Diamonds to be a secure tangible asset investment opportunity, enabling people to invest in diamonds with the guesswork eliminated. Investors select the weight and number of diamonds they want to invest in, displayed in an attractive, protective case. Rand Diamond is a primary supplier to high-end retailers of ethical diamonds. For more information on investing in diamonds, visit the site at: www.dvddiamonds.com.