To paraphrase a popular quote, the diamond exchange is increasingly an investor's best friend. Blue-chip stocks have tanked, the real estate market is no longer as safe as it once was, and oil is too volatile even as a hedge. Diamonds, however, are always going to be valuable and a good bet for the simple reason that it is a stable market where demand far outstrips supply. This status quo is likely to remain unchanged for the foreseeable future.
Prospective investors still need to do some groundwork and must learn how these stones are bought and sold in exchanges. It's not like two people can just sit across the table and conclude a transaction. Most diamonds are routed through exchanges that can be found in every part of the world.
These exchanges not only set the prices, but also take responsibility for acquiring the stones, grading them, providing certifications and safe delivery to the buyer. The grading and sorting process is dependent on factors such as size, shape, color and clarity. Every stone is unique, and can be placed in 12,000 categories.
In general, all diamonds can be classified as being gem or industrial grade. The latter has applications in drilling and cutting tools. Gem grade stones are purchased in wholesale quantities by jewelers for making jewelry.
Certifications that are important for diamonds to be traded legally through an exchange include GIA and Kimberley Process certificates. GIA stands for the Gemological Institute of America, with GIA labs setting the standard for verifying the grade. The Kimberley Process certification ensures the stones are not conflict (blood) diamonds.
The World Federation of Diamond Bourses has created standards which most of the major exchanges follow. This ensures that all WFDB member bourses across the world follow the same system for buying and selling diamonds in a safe and transparent environment. The result is a stable global market where stones from mining companies are legally purchased by the diamond exchange and then graded, certified and delivered safely to buyers.
Prospective investors still need to do some groundwork and must learn how these stones are bought and sold in exchanges. It's not like two people can just sit across the table and conclude a transaction. Most diamonds are routed through exchanges that can be found in every part of the world.
These exchanges not only set the prices, but also take responsibility for acquiring the stones, grading them, providing certifications and safe delivery to the buyer. The grading and sorting process is dependent on factors such as size, shape, color and clarity. Every stone is unique, and can be placed in 12,000 categories.
In general, all diamonds can be classified as being gem or industrial grade. The latter has applications in drilling and cutting tools. Gem grade stones are purchased in wholesale quantities by jewelers for making jewelry.
Certifications that are important for diamonds to be traded legally through an exchange include GIA and Kimberley Process certificates. GIA stands for the Gemological Institute of America, with GIA labs setting the standard for verifying the grade. The Kimberley Process certification ensures the stones are not conflict (blood) diamonds.
The World Federation of Diamond Bourses has created standards which most of the major exchanges follow. This ensures that all WFDB member bourses across the world follow the same system for buying and selling diamonds in a safe and transparent environment. The result is a stable global market where stones from mining companies are legally purchased by the diamond exchange and then graded, certified and delivered safely to buyers.
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To learn more about wholesale diamonds for investments, simply call Investment Diamond Exchange (IDX) and a diamond representative will answer all of your questions.
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