For some time it is seen that investment in diamonds is beeing strongly promoted amongst individual investors. While the acquisition of precious stones may actually be an interesting way to an alternative investment, upon deeper reflection, I see a fundamental problem. In my opinion, unfortunately, precious stones market is relatively shallow and not easily available to ordinary investors.
While the sale of gold, silver, coins or stamps is not much trouble in the case of diamonds (like the rest of the other alternative investments such as wine) the chance to sell the purchased the stone is smaller. Where would we have to go with the stone? The knowledge needed to assess the value of the jewel is so large that it is highly risky for buyers and sellers without specialist know how. There are of course jewelers, but they offer us a deep discount prices.
What this conclusion? If someone does not have a secure outlet and does not know the diamond market, let this idea go.
Anyway. It is a common problem with the rest of all alternative investments. Their liquidity is the lower, the more it is a niche market and the more knowledge is crucial for this to make such investments.
