Diamonds need to think twice about long-term investment
The value of diamonds is high, and the market will change every year. Especially in the past few years, the price has risen every year, so it has also become an investment channel. However, difficult circulation has always been a serious injury to diamond investment. In this regard, senior practitioners in the diamond industry believe that although many organizations are currently working to solve this problem, so that the investment value of diamonds can be truly reflected, but this also needs to first solve the "diamond investment purchase price and recovery price is reasonable. Evaluation" and other issues.
The price of diamonds has entered an adjustment period of 7%-8% per year in the past two years.
“Diamond investment is similar to some collection investments. The more rare the appreciation space is, the larger the carat appreciation rate is. The manager of Haobo Diamond Brand Department Wu told the New Express reporter that the general diamond investment is basically Based on loose diamonds, around 14,000 years ago, a 1 carat F-color VVS (one of the diamond clarity grading standards) of loose diamonds, the market retail price of 30,000-50,000 yuan, now the same level of diamond retail The price has reached 60,000-80,000 yuan, which is only a one-carat increase.
However, the price of diamonds has dropped significantly this year, causing concern outside the industry. Recently, De Beers, the world's largest diamond manufacturer, announced a price cut of 9%. In the terminal consumer market, merchants have also increased the discount of diamond jewelry. Rong Rong, a practitioner in the diamond industry, told reporters that before and after the National Day, many shopping malls in Guangzhou and Shenzhen promoted diamonds, and 30% off and 80% off were common.
Diamond prices are on a downward trend, does it affect the diamond investment market? Song Aibin, CEO of Shenzhen Zhubao Technology Service Co., Ltd., which specializes in diamonds and jewellery, said that in the 10 years before 2013, diamonds have been increasing their prices, with an average annual increase of 10%. about. Especially in 2008-2009, it was 30% longer. However, from 2013 to 2015, diamond prices have fallen, falling by 7%-8% per year. He believes that the current diamond price is only in the adjustment period, although it will not rise sharply in a short period of time. However, due to limited diamond resources, demand has been growing, and diamond prices will continue to rise for a long time.
Rong Rong also pointed out that the current price of diamonds in the international market is relatively stable. Despite the price fluctuations in the past two years, the overall trend is still growing steadily. Moreover, different standards of bare diamonds have different ups and downs. Since the beginning of this year, the price of loose diamonds within 1 carat has dropped by 10%-15%, and the price of loose diamonds above 1 carat has increased by 8%-12%.
Trading channels are limited and the market has been monopolized
Despite the prospect of appreciation of diamonds, it has not become an investment hotspot like gold, jade and jade. It has not been widely sought after in the domestic investment community. Why?
Song Aibin pointed out that the difficulty in investing in diamonds is mainly because the channels for ordinary investors to buy and sell diamonds are very limited. The purchase of diamonds through the retail market is too high and there is no investment space. At the same time, ordinary people have almost no discount channels. Even if they add value, there is no channel to sell a fair price. The price discounted through the pawn shop is sixty-seven percent more than the wholesale price of diamonds. The discounted fee is too high.
Manager Wu believes that the difficulty of investing in diamonds is similar to that of art antiques. The level of discrimination of ordinary people is not enough, even if it has a basic understanding of diamond 4C. In addition to 4C, the price factor affecting a diamond has other components, such as fluorescence or not, background color or not. However, diamonds have a higher popularity than other colored gemstones and jade, and there are corresponding grades. In addition to the level of diamond identification, it is not easy to grasp the source of diamond raw material price information. If the purchase price is not ideal, the room for appreciation is not so high.
In addition, there is also a saying in the industry that “there is a monopoly in the diamond marketâ€. According to media reports, De Beers, the world's largest diamond distributor, currently accounts for about 80% of the distribution market. If the price of diamonds falls, De Beers will buy back a large number of diamonds to suppress the price drop; if the price of diamonds rises too fast, De Beers sells it. diamond. Therefore, the price of diamonds is controlled to some extent by international diamond dealers such as De Beers.
It is still difficult for an organization to repurchase its own brand.
In fact, at present, Guangzhou also has trading institutions engaged in diamond investment, liquidation, storage and repurchase. The business forms include three types: value-preserving by price; diamonds of rare varieties are value-added by 10 points every three years; quality The lower product is repurchased at a price of 7.5-8 fold. However, in terms of circulation, it has not been able to achieve full circulation, that is, it is currently only for the repurchase of products sold by its own company.
Manager Wu believes that for diamond investment companies, it is a new investment trading platform, which has a positive significance for market development, and the prospects are also very good. However, the current domestic investment market is far from reaching this stage, so it is in the development stage at this stage. There is still a lot to be done to improve the liquidity of diamonds, including raising the rational view of consumption in the domestic diamond market.
“However, the most difficult thing is how to evaluate the purchase price and recovery price of diamond investment.†Song Aibin pointed out that the difference between the purchase price and the recovery price also directly affects the confidence of diamond investors. The smaller the price difference, the liquidity The higher. However, the smaller the spread rate, the higher the risk of the investment institution. How to balance risk and market, the biggest difficulty in the market, is also the most valuable place.
However, there may be ways to indirectly let the diamonds circulate. The president of the Guangzhou Gold and Silver Jewelry Industry Chamber of Commerce believes that if a company can apply for loan financing from a bank with diamonds, the diamonds held by individuals can also participate in bank wealth management services, so that diamonds are domestic. The second circulation will achieve a breakthrough.
Investment Advice
Large scores, the diamonds of famous brands have more room for appreciation
Song Aibin believes that investment in diamonds must distinguish between jewelry consumption and investment. In general, diamonds on diamond jewellery are less valuable if the particles are small and of ordinary quality; diamonds with large scores and high quality are more scarce.
Manager Wu suggested that ordinary investors can choose to purchase some diamonds with higher scores, at least one carat. If you want to buy diamonds, if you consider the investment direction, you can buy some well-known brands with high cost performance. Once you have enough protection for the products, there will be no too high brand premium, which will be closer to the original price of the diamonds. And the appreciation space will be larger.
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