A Diamond is the real asset with the highest value per volume, and certainly the most beautyful.

Value of an Investment Diamond

It is said that diamonds are of eternal value. This refers to both their beauty and their monetary might. The financial valuation depends on a set of parameters, and here we want to give you an overview on the most important ones.

How diamonds are valued

The determination of a diamond´s price is a market-driven interplay of supply and demand. At Pundia, the great trading experience of Dr. Ulrich Freiesleben, Germany´s leading diamond trader, is at play. With his knowledge and oversight of the market and its key players, we achieve fair Investment Diamond prices for our customers.

Financial development of diamonds

For many decades, inflation-adjusted diamond prices remained very stable. In the last two years, diamonds appreciated greatly alongside other real assets. However, a „common“ perfect white 1 carat brilliant, mostly used for engagement rings, did not appreciate as much as a rare 3 carat vivid pink brilliant. The prices of diamonds are generally little volatile, as they are not used as underlying of financial instruments.

Diamonds as Investment Vehicles

Commonly, people think about diamonds as jewellery, but one of their most important uses is as investment vehicles. This is due to several reasons. First, as a real asset they are inflation-resistant. Second, they are internationally tradeable . Third, they exhibit the highest value concentration per weight – a million dollars in diamonds could mean a rare stone of 1 carat (0,2 grams). Forth, they are a great vehicle for value conservation or value increases (see Longterm „Speculation“ and see Articles on Diamonds). And finally fifth, Investment Diamonds are traded without the hefty mark-ups of jewellers – they are the most honest version of a stone-related investment.

Why Investment Diamonds can be trusted

Buying a diamond is based on trust. It has been like this forever. In this sense, it is a people business. Apart from the integrity and quality of your advisors at Pundia, we also would like your trust in our process of getting the best stone for your portfolio. Let us show you here why you can have complete trust in your Investment Diamond.   

Only GIA certified stones

Pundia only buys Investment Diamonds which have been graded by the Gemological Institute of America, short GIA. GIA is the highest regarded grading institute for gemstones worldwide and is renown for its quality and objectivity. Still, when having identified a perfect diamond for your needs, our trader Dr. Ulrich Freiesleben independently reassesses the stone as to confirm the GIA grading. Hence, you can be sure that the stone has exactly the characteristics in the 4 C dimensions as indicated in the grading report. Furthermore, the GIA identification number is etched with fine laser into the rim of your stone, invisible to the eye but easily detectable by microscope, such that your stone is immediately identifiable even when you might have lost your grading report. The Pundia quality promise is that we only look for diamonds of the highest ratings in all 4 dimensions, as this is the best guarantee for a positive value development of your stone.

Only natural diamonds

An Investment Diamond only has value if it is a natural stone, because only natural stones are rare. Therefore one question often asked is how we can guarantee that the stone is natural. Luckily, the answer is straight forward: a natural diamond can easily be distinguished from an artificially grown lab diamond. There are a variety of spectroscopic technologies used by grading institutes to clearly identify the provenance of a stone. This is the reason why artificial diamonds trade for steeply lower prices than natural diamonds; in effect, two parallel markets exist. By buying a Pundia Investment Diamond, you can be sure that it is natural and that is keeps its high value.

Only conflict-free diamonds

Pundia guarantees that all its diamonds are sourced according to the “Kimberley Process”, a process established by the World Diamond Council and the UN to guarantee that only conflict-free diamonds enter the international trade.

International tradability

As many of our clients are internationally active and call the world their home, it is important to provide them with assets that are also internationally tradable at any time. We achieve this by three means. One, all Pundia Investment Diamonds come with a GIA certificate, which is internationally accepted and hence facilitates selling at any registered diamond trader worldwide. Two, Pundia searches only for the best diamonds for its clients, which again facilitates international tradability. And three, Pundia offers its clients an option to resell their diamond through Pundia itself. Whenever you want to trade your diamond investment, we will make it possible.

Value stability

Investment makes only sense if a positive return is to be expected. That is why we only sell the best diamonds, which we expect to rise in future. We believe that careful investment object selection can go a very long way in achieving this. Value stability is to a large degree “built into” any diamond investment, as diamonds are real assets and hence untouched by inflationary devaluation. As they are not used as underlying to financial instruments, they are also not prone to volatility. In fact, exquisite diamonds are a synonym for value stability.

Confidentiality

Pundia strictly adheres to the values of Swiss financial tradition and guarantees its clients complete confidentiality. This means your name will be known to us, but to no one else. There is no official registration of your new diamond asset. When we vault your stone here in Switzerland, you chose whether to remain anonymous to the vaulting company or not.