Natural diamonds are a lucrative investment…
There is something about natural diamonds that make people hold these precious stones in high regard. They say, diamonds are forever and that they are the ultimate expression of love and exemplifies one’s wealth and status. Let’s dive deeper into the timeless world of natural diamonds…
What magnifies the market value and investment worthiness of natural diamonds
- It is fantastically expensive to operate a diamond mine. The lifespan of many mines is a decade or two (before it becomes too expensive to go deeper). Even in the most productive diamond mines, companies need to search through about 250 tons of rock to find a single carat of diamond. It is economically feasible to mine only 5% of world’s natural diamonds.
- Diamond rough yield is low. Once you move tons and tons of rock and find that one sparkling carat of rough diamond, you’ve got it made, right? Wrong. The yield of diamond rough is usually around 30%. A one-carat rough diamond will cut a one-third carat polished stone.
- Miners need huge amounts of capital to develop mines. Cutters need millions of dollars to purchase rough diamonds to keep their manufacturing facilities going. Jewellery manufacturers need to buy diamonds to create jewellery and retailers need to invest in inventory. Every single step of the diamond value chain demands unimaginable amounts of capital.
- Because extracting diamond rough is so capital intensive and yields can be so low – sorting, evaluating and cutting each piece of rough requires real expertise. Each lot of rough must be carefully evaluated by experts to assess its potential.
- Now expensively financed diamond inventory needs to be graded and certified by GIA. This adds to the cost and a few extended weeks of financing to the cost of a one-carat diamond. But more importantly, that grading report sets the price of your diamond.
Finally, Natural diamonds are expensive because they cost a lot to bring to market, there is finite supply and people around the world want to purchase them. It’s simply a demand and supply equation.
Why rely on a renowned natural diamond supplier when sourcing top-notch natural diamonds?
- Exceptional quality of the diamonds.
- When you choose a reputed exporter revered for delivering diamonds with internationally acceptable quality standards, be rest assured, you’re in safe hands.
- High-quality diamonds attract customers, enhance satisfaction, help businesses gain positive reviews, ensure repeat business and help obtain word-of-mouth referrals.
- Teaming up with a top-tier exporter enhances the credibility and trustworthiness of businesses.
- Assured with consistency in the quality of diamonds being offered, businesses can build a brand equity that connects with their clientele, thereby, helping them to get a competitive edge in the market. Such credibility fosters long-term relationships with a credible exporter.
If you’re a business owner looking at sourcing natural diamonds, always consider working with a trustworthy and reputed diamond supplier and exporter.