Diamond - a pocket-sized investment

Interview of Haszon Magazine with Mr. Arik Herman, founder and owner of Caprice Hungary.

Their value does not depend on governments and central banks, nor on manipulated interest rates or hijacked exchange rates. It depends more on their uniqueness or the trust in them. Honestly, sometimes you may need expert assistance when selecting them.

A tiny diamond is merely the size of a pea, but (depending on its quality) it may worth 7-8 million Forints. Expensive and is getting more expensive. In the last 50 years, the diamonds for those who voted for them, brought an average rating of 14.5 percent year-over-year . The investment environment is clearly favourable - says Arik Herman, the founding owner of the Israeli-based Caprice Hungary diamond trading company. Demand grows: with the growth of the global economy, industrial use increases (for example, drill bits). Explosive growth is also expected in retail purchases. While for a hundred years in America, only 5% of engagements have been brilliant, today, due to the marketing efforts of the largest diamond maker in South Africa, DeBeers, this ratio is already 86 percent. At present, China accounts for only 1-2% of global demand, but grows by one third a year. It is worth thinking about what an overseas rate may mean in the coming decades. Meanwhile, supply stays stagnant: over the past 20 years no larger diamond fields have been found, and the launch of one mine lasts for an average of six years.

The exchange rate of diamonds

The precious gemstone, according to past experience, fluctuates to a lesser extent than the more risky currencies and stocks. Price is determined solely by the trade. There is, for example, no "physical" existence, that is, no physical diamond-based speculation. There is no uniform world market price  - as we say in the case of gold from day to day in London. There cannot be: it is measured by carat (1 carat = 0.2 grams), clarity, color and cut (the 4c). Without a single market, they are being sold and traded within merchant networks. Therefore, it is important to take an expert, accept the advice, and to buy from reliable sources and with international certificates.

 

Haszon Magazine