A century of growth - diamond is a certainty for the patient!

Diamonds International Corporation, a leader in the Middle-European region in investment diamond sales, draws attention to the long-term stability of diamond investments.

International Monetary Fund keeps repeatedly correcting their overly optimistic prognoses regarding the development of economy. A deterioration in economic development is reported by most major world countries, except Japan and Great Britain. The Euro zone is not likely to recover from the recession this year and expects a decline in economy, which is just as rapid as last year, i.e. by 0.6 percent of GDP.Even countries like Germany,  Italy or France are not better off.

The current development on the Czech political scene will not help economy either. "Political situation will slow down the steps that were prepared by the government to aid the economy. Many people have already spent their existing savings and they start to save money intensively. Those, who still have some savings are pondering the ways to invest them to avoid their depreciation.", explains MUDr. Luboš Říha, president of DIC holding.

So where to find certainty in these uncertain times? Here is where diamonds come into the equasion, as they are recording a continual annual growth of prices. The only two major fluctuations were recorded during the 1978-1981 world economic recession and at the turn of 2008/2009, when there was a sharp appreciation of US dollar. Diamond keeps its real value even in times when US dollar significantly appreciates or depreciates.

Price development of 1 ct investment diamonds in USD (Source: DIC, 1/2013)

Diamonds are primarily a long-term investment. Following the last year's stagnation, the second half of 2013 is expected to see a growth of at least 5%. The precursor to the development can be the prices of small diamonds, most of all 0.3 carats, used primarily for jewellery, which are currently recording rapid increase and are enjoying a high demand worldwide. For example, prices of 0.3 ct G/VS1 has grown by 9% since the beginning of 2013, and by 8% in colors further down the alphabet (e.g. M/VS1).  

"We are frequently visited by customers, who have savings of couple million crowns at their disposal, which they intend to invest in a most profitable way. Certainty and security of their investment is one of the top priorities for them. They do not expect an immediate return of their investment, but they want to secure their retirement. They are saving money, so that they can use them in 10, 20, or 30 years' time. The diamond is an optimal choice for exactly this sort of customers. It keeps its value in time and unlike gold or other precious metals, it stood the test of time and several economy crises already," explains MUDr. Luboš Říha

Among many investment commodities, diamond is the safest one; it brings stable return, and in time, its value, considering the limited mining sites, will only continue to grow. Unlike other alternative investments, deep knowledge of the issue is not required. All the necessary information is provided by a certificate, issued by a gemological institute which is respected world-wide. The certificate must contain the so-called "4C" - Color, Clarity, Carat weight and Cut. The recommended amount for entry-level investments is 250,000 CZK (about 10,000 EUR), small-scale investors are placing demands for stones even half the price, around 100,000 CZK (4,000 EUR). The reliability of diamond lies in its ability to keep its value and be a safety for the future.