How does someone become a diamond expert?

Diamonds: Are the gemstones a good investment?

“Diamonds are a girl’s best friend.” Since Marilyn Monroe, this sentence should be familiar to pretty much everyone who deals with gemstones. Diamonds have always been considered the most precious gift that one person can give another. Because the precious stone is a symbol for some of the highest human ideals - it stands for strength, loyalty, purity, perfection and eternity.

So if you haven't had an idea for a suitable Christmas present for your loved one, you could think about giving something really valuable.

Because diamonds are suitable as a present and as an investment at the same time, as they achieve, in addition to the ideal return - namely the joy of the recipient - often years after the purchase, sometimes lush increases in value. However, buyers have to look very carefully and get good advice.

Demand exceeds supply

In view of the historic low interest rates, no significant returns can be achieved with government bonds or savings accounts. Equity investments are sometimes associated with large price fluctuations. "Diamonds, on the other hand, are a currency in crisis that have little fluctuation," says Arnim Kogge, investment advisor at the Vertiva Family Office based in Stuttgart.

The expert refers to a study by the management consultancy Bain & Co, according to which a strong increase in the value of diamonds can be expected by 2020. The reason for this is obvious even to laypeople. “It has been decades since the last diamond mines were opened,” explains Kogge. New mines are only sporadically in sight - the demand for the gemstones is high, however. And where demand exceeds supply, prices rise - that's the basics of the market economy.

Nevertheless, consumer advocates advise caution: savers should not be seduced too quickly, says Ariane Lautenbach from Stiftung Warentest. Because there is no guarantee for the increase in value.

In addition, there would be many black sheep romping about in the market, who would sell completely overpriced diamonds to their unsuspecting victims, which could later only be sold for a fraction of the price paid. "If you don't have any specialist knowledge, you should keep your hands off diamonds," advises Lautenbach.