Provident Metals now offers diamond bullion at wholesale prices to individuals interested in diversifying their investment portfolios. This is an innovative use of a physical asset that until now has been largely monopolized by industry.
Each diamond has been inspected and graded by a certified Gemological Institute of America Gemologist on weight, size, cut, clarity, color and composition. Diamond bullion is sealed in a tamper-evident Certicard® and given a unique serial number.
Because diamond bullion is a product unique to Provident Metals, we have developed this content to help investors better understand the merits of diamonds as a physical investment asset, and as a way to diversify an investment portfolio.
Why should I buy loose diamonds?
As with other commodities, the value of diamonds changes with the market. It is estimated that diamond value will increase 6% each year until 2020 because supply is limited and demand is increasing. And unlike its precious metals counterparts, diamonds are less susceptible to market manipulation. There is no centralized entity that controls the price of diamonds, and significant discoveries of diamonds in the latter half of the 20th century helped increase the number of companies producing gem and industrial quality diamonds.
Second, the value of diamonds as an investment and tradable asset is broadly accepted. A diamond/gemstone backed ETF showed positive gains across 2013. Indeed, Matt Manson, CEO of Stornaway Diamond Corp., predicts that 15-20% of future diamond demand will be driven by investment.
Third, diamonds are an appropriate way to store and transport wealth. The value per unit of size favors diamonds over most other commercially available and tradable commodities. Diamonds’ size makes the transportation and bequest of significant amounts of wealth simple and convenient.
Finally, as discovery and the global supply of virgin diamonds decreases, demand and value will likely increase proportionally. Unlike other physical commodities, there is a finite amount of naturally occurring diamonds and precious metals. Supply has a negative relationship with value; as supply decreases, the value of the asset will increase.
Why aren’t more people investing in diamonds?
As with many lucrative investment opportunities, the satisfaction derived from the asset is impacted by its administration. While others have taken advantage of new investors by misrepresenting the quality of diamonds, Provident Metals passes every diamond in the melee through a rigorous certification process. Investors can be confident that each diamond in our melee meets the standards of investment quality gems.
Also, valuation of diamonds is problematic. Many qualities used to evaluate diamonds are subjective. Consequently, diamond retailers may price diamonds differently. At Provident Metals we use traditional valuation techniques and we consult pricing guides produced by industry leaders to insure that the price of our diamond bullion melee accurately represents its value.
What to keep in mind
Like other precious commodities, diamonds can be overpriced. Purchasing investment diamonds from a jeweler is a common mistake. Often, these diamonds are priced for retail, not wholesale. It is important to select a broker that is willing to sell gem quality investment diamonds at wholesale prices.
Likewise, diamonds in jewelry will carry a higher premium than loose diamonds. To capitalize on the investment, therefore, it is important to only purchase diamonds that are packaged for investment purposes.
ProvidentMetals.com is the only precious metals dealer to offer loose diamonds for sale. Our initial release of one carat diamond bullion melee includes three different grades of diamonds, though we plan to expand our offerings. Each order comes safely enclosed in a Certicard security case for long-term storage and protection.
To show our commitment to the future of diamond bullion investing, each Certicard comes with the signature of our CEO, Joseph Merrick.
Please read our extensive piece on investing in diamonds to learn more. We welcome your questions, please contact us through email, facebook, twitter, or toll-free on weekdays at (800) 313-3315.
