Israeli Diamond Portal Reports: USD Depreciation Triggers Diamond Investment in China

July 20, 2009 - PRLog -- Diamonds have become the third most important consumption products for investment, with vehicles claiming second place and property ranking first. Chinese consumers are adding diamonds to their individual or family investment portfolio.


According to one jewelry shop owner, aside from the highly successful bridal jewelry market, over 51% of diamonds being purchased these days in China are for investment purposes.  


One of the diamond experts, Mr. Tong Zheng Rong, claimed that 1 carat of polished diamond cost RMB 25000 about 7 to 8 years ago while today the same diamond is worth RMB 60,000.



He also noted that the dwindling natural resources when it comes to diamonds, combined with the  reduction in rough diamond production  for the first time in 25 years, has naturally caused diamond prices to rise on the market.



The fact that diamond grading identification is standardized internationally provides complete transparency regarding the diamond’s true value. These internationally recognized certificates minimize risks when it comes to identifying the value of the investment.



The analyst pointed out that during the current economic recession, investing in diamonds might present a lesser risk than US dollars or stocks, but this does not mean that there is no risk whatsoever. He advised that when a consumer decides to buy a diamond for investment purposes, he should learn all about its qualities such as color, clarity, carat, etc. For investment purposes, it is always recommended to choose high-quality stones.


The international standard for identifying diamond quality uses the 4C’s (color, clarity, carat & cut). The diamond’s cut is a critical element which influences the diamond’s price. The procedure of evaluating how to cut the rough diamond is complicated. The more sophisticated the design and polishing, so the diamond becomes more valuable with the top grading going to flawless diamonds. The diamond’s level of flawlessness directly impacts on its value.



The analyst points out that the origin of the rough is not the major factor that contributes to its value but rather the stone’s quality. Some suppliers use the origin of the diamond to mislead the consumer and will categorize the diamond according to its geographical source - Belgium, South Africa or India.



When seeking to buy a diamond as investment, it is recommended to consult with experts or authorized organizations and always ask to see the diamond’s recognized certificate.



Courtesy of the Diamond Administration of China  (DAC)

# # #

The Israeli Diamond Industry organizations
Behind the Israeli Diamond Industry are a group of vital and dynamic institutions. Each one is responsible for a different aspect of the industry’s activities.