Why are high-quality diamonds good for asset protection? What are their benefits? Redemption methods and investment points

Protect your assets with high quality diamonds! Check out the benefits, redemption methods, and investment points

In recent years, asset protection has become increasingly important due to risks such as global financial instability, inflation, war, and natural disasters. Traditionally, assets such as stocks, bonds, and real estate were commonly used to protect assets, but in modern society, it is undeniable that these assets may also be exposed to risks. Under these circumstances, diamonds are attracting attention as a new means of asset defense. Here we will explain why high-quality diamonds are suitable for asset protection.

Reasons and benefits of high quality diamonds suitable for asset protection

Reasons and benefits of high quality diamonds suitable for asset protection

Easy to carry and store

Diamonds are small and lightweight, making them easy to carry. Compared to other assets such as gold, it can carry equivalent value in a much smaller size.

Asset example weight
Approximately 1 billion flawless diamonds weighing over 30 carats Approximately 6g
Market price 12,800 yen / 1g of gold (gold) 1 billion yen Approximately 78kg

Diamonds are also highly durable and can maintain their shine for a long time if properly stored. It has the advantage of being easy to store anywhere, such as in a safe at home.

Having a universal value standard

Diamonds are evaluated based on the 4Cs (weight, color, clarity, and polish), which are common standards around the world. The 4Cs are internationally recognized standards that allow us to objectively evaluate the quality of diamonds. This common standard allows diamonds to be bought and sold anywhere in the world, ensuring consistency and reliability as an asset.

less likely to decrease in value

High-quality diamonds are considered assets that retain their value over a long period of time. Even if there are market fluctuations, their scarcity and demand make them unlikely to experience a large drop in value. In addition, high-quality diamonds have been highly valued both historically and culturally. As a result, it has the characteristic of being easily recognized for its value over time.

acts as an anti-inflation measure

High-quality diamonds are an asset that is less susceptible to inflation, which risks reducing the value of cash and savings. It is effective as a risk hedge against price increases.

Stable demand for a variety of uses

Diamonds are used not only in jewelry but also in industrial applications, such as cutting-edge technologies such as quantum computers, particle accelerators, and semiconductor manufacturing. It can be said that demand is stable for a variety of uses.

Highly individual and has many collectors

Diamonds are highly individual, each with different characteristics. It is also an attractive asset for collectors and investors because each diamond has an individual value.

Part of asset diversification

Owning high-quality diamonds as part of your investment portfolio provides asset diversification. It is effective as a risk hedge because it moves differently from other investment targets such as stocks, bonds, and real estate.

How to exchange diamonds for cash and precautions

How to exchange diamonds for cash and precautions

Diamond purchase specialty store

One way to exchange diamonds for cash is to use a specialty diamond purchasing store. However, professional diamond dealers are unlikely to be found at purchasing specialty stores, and part-time workers or staff with little training will offer rough prices, so you are sure to lose money. And since they often look at their feet and offer a lower price, I hear of many problems. Do not take it to the purchase store easily!

auction

One way to convert diamonds into cash is to sell them at auction. Auctions have the potential to sell at market price to buyers around the world. However, listing items at auction requires specialized knowledge and procedures, so thorough preparation is required in advance. Also, be aware that you may not necessarily get the price you want. If you are going to put it up for auction, you should put it at Christie's or Sotheby's, whose customers are wealthy people from all over the world, rather than at a domestic auction.

Benefits

  • Potential to sell to buyers around the world
  • Expected to sell at market price
  • Sometimes it can be several times the expected price.

Disadvantages

  • It takes time, sometimes 10 months to a year
  • There is no guarantee that the bid will be sold at the desired price.
  • grading reportand listing procedures are required.

Points to note:grading reportand market price fluctuations.

When exchanging diamonds for cash,grading reportbecomes very important.grading reportThis certifies the quality of the diamond, and preferably one issued by an internationally reputable grading organization. GIA/CGL (CGL) etc.

How to invest in high-quality diamonds and points to keep in mind when investing

in-kind investment

In physical investment, you actually purchase high-quality diamonds and hold them as assets.

Benefits

  • Sense of security that can be held as a real asset
  • Expectations as an inflation hedge
  • The beauty of the real thing, the joy of owning it

Disadvantages

  • liquidity risk

Retailers and brand stores sell items at prices far higher than the market price, so if you buy from such stores, you are losing money the moment you buy. If you definitely want to buy it, you need to buy it from a professional vendor such as a wholesaler.

  • Price fluctuation risk

If you take it to a buying shop or pawn shop to turn it into cash, you will lose money if your diamond is stolen, so you should consult or ask a professional diamond dealer to resell it.

  • Securing storage space and security risks

Round brilliant cut for asset protection

Diamonds come in a variety of cuts, including round, oval, pear, heart, square, and princess cuts. If there are diamonds of the same carat, color, and clarity, the difference in cut can affect the transaction price. When purchasing diamonds for the purpose of protecting your assets, consider the cut as well.

Continue to shine beyond the times
True asset protection “diamond”
Amazing-Kobo

Amazing-Kobois a jewelry store that carries the highest quality diamonds. With more than 30 years of experience and solid technical capabilities, we handle everything from purchasing rough stones to cutting, polishing, design, and sales. In today's world where the value of cash is decreasing due to rising prices, rare gemstones such as diamonds, rubies, sapphires, and emeralds are attracting attention from the perspective of asset protection.

Amazing-KoboWe carry only the highest quality diamonds with high market value and offer them at near wholesale prices. internationalgrading report・Not only does it come with an identification center, but also jewelry such as rings.looseWe have a wide selection of both (bare stones). The world's largest and highest quality diamond, weighing over 50 carats.looseIf you are looking for diamonds or other diamonds that can help protect your assets, please visit us.Amazing-KoboPlease use.

When choosing a diamond to protect your assets
Amazing-KoboPlease consult with

distributor Amazing-Kobo
Company name Kira JWELRY Co., Ltd.
Location 901 Okachimachi Green Heights, 6-1-6 Ueno, Taito-ku, Tokyo 110-0005
phone number 0120-672-141
email address info@amazing-kobo.com
URL https://amazing-kobo.com/