Investing in precious stones – more precisely: diamonds – has been quite the rage lately. Though not a traditional investment vehicle by any stretch of the imagination, the diamond industry has drawn increasing investor interest lately, to such an extent in fact, that many have begun viewing the precious stones as the next gold. All this interest comes hot on the tail of a number of highly successful gold-based ETFs, as people with disposable income all over the world are hungrier than even for new investment horizons.
Why do people want to invest in diamonds? Some do it to counter the inevitable effects of inflation. This is mostly the case in China. Others are looking to protect their wealth. Still others are simply hoping that the opening up of the diamond pricing model will draw in more investors and thus contribute to an increase of value for the stones. This tendency of increasing value has been present for the last few years, as global supply failed to show any signs of increasing, while demand has effectively skyrocketed.
These are just a few of the factors that prompted me to diversify away from binary options and other traditional investment MOs, towards precious stones. The lack of volatility, the almost guaranteed profits and the pure aesthetics involved were obviously also parts of the equation.
How do you though – as a small-time retail investor – get involved in the trading of diamonds? There are diamond stocks and diamond investment funds, as well as major events where some of the world’s most expensive stones are sold. The problem is that they all require significant sums of money to get into. The answer for me was DiamondsRush.com.
What is DiamondsRush?
DiamondsRush is essentially an online marketplace where retail buyers get to pick stones from a selection of over 800,000, and where quality is guaranteed even as the prices are kept at reasonable levels. According to the platform owner, the collection includes loose stones, diamonds, colorless diamonds and colored diamonds. What you need to know about these stones is that their value is determined based on the 4 Cs: Clarity, Color, Cut and Carat. These days, colored diamonds are all the rage. The more expensive the stone that you purchase is, the more likely it is to gain in value over time.
The possible pitfalls of diamond investing consist in the fact that they are obviously not homogeneous (stones can literally fall into thousands of value-categories) and they can therefore be confusing for beginners. They decline in value when divided (this one is quite self-explanatory) and there isn’t sufficient volume in the diamond markets to allow for the use of the stones as currency. These are also some of the factors which draw a set of clear differentiating lines between diamonds and gold.
With all that, through DiamondsRush, your precious stone investments can indeed be hugely profitable. It has to be pointed out that everything sold through the online platform is fully Kimberly-compliant, and the stones are delivered accompanied by the required certificates. What all this means is that you are guaranteed that your DiamondsRush stones are not so called “blood diamonds,” as they do not originate from areas of conflict, where slave-labor and other abusive means may have been used to obtain them.
In addition to Kimberly certification, DiamondsRush’s merchandize is also accompanied by certificates from some of the world’s top gemological authorities, most notably from GIA (the Gemology Institute of America).
According to some DiamondsRush clients, the stones delivered by the platform are of the highest quality, so the possibility of financial loss resulting from an investment with them, never really exists. All that is true to a certain extent though. Cheap, low-carat, colorless stones – the cheapest of the selection – may in fact fluctuate in value, even more so because they represent the most vulnerable segment of the diamond market, one that has experienced bubbles and downturns in the past. It does have to be said though that even this market segment has been remarkably stable and growing over the last few years.
Let’s assume that you have made up your mind about investing in diamonds…
How do you go about investing with DiamondRush?
The first step is to register an account with the platform. The registration process is simple and it only takes a few minutes to complete. Once done, the user is ready to get down to business.
The second step is to browse the diamond collection and to find the right stone for your budget, keeping the factors I covered above in sight. As I stated, picking a stone is a rather intricate exercise. Fortunately, DiamondsRush have devised a way to help their clients in this regard too: they have put together a comprehensive buying guide, which covers the above mentioned 4 Cs in detail. Make use of it.
The third step is to choose what you want to do with your purchased stone. DiamondsRush offers clients several options in this regard too. You can opt to have the diamonds delivered to you, or you can keep them in DiamondsRush’s vaults, which are set up in free-trade areas, where the storage fees are very low.
The fourth and final step is to wait it out and cash in.
What I personally did upon my first purchase was to have the diamonds sent home. I got my first one within 3 weeks. It was a small purchase: an 0.5 carat, colorless stone, which I intended to have checked at my local gemologist. Sure enough, the merchandize checked out as genuine, and since then, I have completed a number of more expensive purchases. If you feel like it and if you can afford it, you can follow this MO too, just to give yourself the peace of mind that you are indeed dealing with a genuine and reputable service. Bear in mind that you are supposed to receive at least a couple of certificates with your diamonds. Put these certificates away so you can pull them out anytime you need to in the future.
Before you make your purchase, I advise you to pore over the General Sales Terms page of the DiamondsRush website, where specifics are given in regards to the purchases you’re about to make.
The corporate entity selling you your stones through DiamondsRush, is Stone Creation PLLC. The prices featured by DiamondsRush include everything, like VAT and all other applicable taxes at the time of sale. Buyers need to keep in mind though that if they have their stones shipped into a country other than the one from where the diamonds are sent, they are liable to pay import taxes, customs duties and other applicable local taxes. All these need to be factored into the eventual investment. The buyer bears all responsibility regarding the customs declarations and the payment of all due local taxes. The prices of the diamonds are all expressed in EUR and that’s how they have to be paid, regardless of the place of origin of the order. The diamond prices are determined based on the current rates, at the time the order is confirmed. Regardless of the status of the order, the stones remain the property of the seller until full payment is confirmed.
After the completion of the payment, and the formal transfer of property rights, the risks regarding damage and loss are transferred to the buyer.
The contractual information regarding every order is delivered in French. Orders can be placed through the website or through phone, and the seller reserves the right not to accept payment.
Orders are only validated after the buyer manually signs the order delivered in .pdf format, through email.
Payments are only accepted through bank transfer or credit card (MasterCard and VISA) which can indeed be a bit cumbersome for those used to more efficient money-transfer methods, but for the time being, there’s no way around this issue.
In the case of physical delivery, the shipping address as well as the time within which the stones have to be delivered, are indicated on the order. If the shipment is delayed, buyers have the option to cancel the order according to consumer law.
In case the buyer is not satisfied with the quality of the merchandize, he/she has the right to withdraw from the deal, sending the stone(s) back. In such cases, the diamonds obviously have to be in their original state/condition.
The sold stones come with guarantees against hidden defects. If a stone is found to be faulty, the buyer can send it back, in which case the price of the stone, as well as the shipping expenses, will be fully refunded.
DiamondsRush’s coverage is a truly global one: stones are delivered in all countries, though – as said above – due to local-specific taxes and added expenses, in some locations, it may be more expensive to make a purchase than in others.
Who exactly is behind this online marketplace though?
As said above, the company behind the operation is Stone Creations PLLC, and it is based and registered in Belgium. The exact address is 460 Breadabaan, Appt 1002, 2930 Brasschaat, Belgium. The company registration number is 882.993.176.
As most reviewers will be quick to point out, security is one of the top selling points of DiamondsRush. The operator goes above and beyond regular measures to make 100% certain that clients’ diamonds are delivered and stored safely.
To this end, they fully insure every one of the stoned they send out. For those who opt to keep their diamonds with DiamondsRush, ultra-secure storage locations are offered in various free-trade zones, where the costs associated with storage are minimal.
For delivery, only trusted transporters are used, from a selection of the world’s most reputable service providers. Everything factored in, DiamondsRush conclude that the chances of losing a shipment are zero. Extra care is apparently taken to make certain that the deliveries are completed in as little time as possible, thus further limiting risks of loss/damage to the precious cargo.
DiamondsRush support can be contacted through a variety of channels, of which the handiest and most straightforward is the live chat support, available directly from the website. In addition to that, there’s a contact form offered as well as an email address (email@example.com), and a phone number: +44 2080 688 701.
As impossible as it may seem, DiamondsRush do in fact offer periodic promotions to the buyers. Obviously, such promotions cannot really target the actual price of the stones, but the storage and shipping fees can indeed be tinkered with. For the last couple of months, these fees have for instance been completely eliminated.
In addition to all the above, DiamondsRush.com features a selection of articles on diamond pricing, and various trivia that gem enthusiasts will doubtlessly find extremely interesting. On their facebook page, they feature a sort of countdown of the world’s most famous and expensive diamonds, running a feature-piece on every one, getting their users acquainted with the best the industry currently has to offer.
DiamondRush Review Conclusion
My experience with DiamondsRush has been an overwhelmingly positive one thus far. The operation gave me a way to instill some degree of diversity to my investment portfolio, without exposing myself to more volatility and nail-biting. With many of the gem industry’s most notorious entities working towards a unification of the diamond-pricing standards, this market is far from maturity. Whenever this objective is achieved, a massive influx of investments can be expected, upon which time, the price of diamonds will register yet another explosion.
The bottom line is that diamond investments are indeed viable and that DiamondsRush.com offers a retail investor a very attractive path into this exciting new vertical. As I said above: to build up trust gradually, order a cheaper, smaller stone from them first, and have it tested by a local gemologist. Keep a keen eye on the associated costs and delivery process, and determine how well it all comes together for you. It has certainly been working well for me.