The InvestDiamond.com Internet platform is the first of its kind to trade in physical diamonds for investment purposes.
As it was reported by Le Figaro, with a single click of the mouse you can buy and/or resell VAT free diamonds weighing 0,001 carats. Stones offered by InvestDiamond for individuals and legal entities are certified by one of the leading diamond laboratories in the world – the International Gemological Institute (IGI).
The Aucoffre.com owners, who created the InvestDiamond project and previously specialized in the trade of physical gold and silver, argue that customers are guaranteed the lowest market prices for diamonds, which are internationally recognized investment instruments.
InvestDiamond keeps its valuables at non-bank security vaults in Switzerland and they are exempt from customs duties and VAT.
Offered for sale investment lots of diamonds consist of thirty or fifty full-rate stones weighing from 0.5 to 2 carats, which you can buy in real time.
"We offer mainly diamond lots, instead of single stones, because this allows us to give you a more attractive price. So, for 20 euros you can become an owner of some part of a lot corresponding to 0.001 carats," said Jean-François Faure, President of Investdiamond.com.
According to him, investors can become owners of diamonds for less than 5,000 euros and will be exempt from tax. Besides, this helps to reduce price volatility.
All diamonds offered for sale come from an intermediary located in Antwerp. Stones from other sources are not put up for sale. Octagonal diamonds certified by IGI, which strictly observes the requirements of the Kimberley Process. Prices are published weekly.
Diamonds purchased by customers at Investdiamond.com are stored on the territory of a free trade zone in Switzerland so the tax when they are sold is not charged. For those investors, who invest in diamonds and want to become owners of physical stones, these are either supplied from Antwerp or purchased for money invested by the company’s partners. But in such cases, customers will have to pay the VAT.
"Diamonds are a safe investment protected from crises and they are also a global exchange currency. This is a cost-effective product. Prices are rising and they must continue to grow as the level of production is low and demand is high," said Jean-Francois Faure. According to him, diamond demand will mainly come from China, which will be the world's largest consumer of diamonds by 2015.
Taking into account the forecasts saying that demand for rough diamonds will grow annually by 6%, "it is also a very liquid asset, which is not controlled by any financial institutions or the state," said InvestDiamond’s president.
Another advantage of this gem is related to taxation. As an investment product diamonds come into the category of “jewelry and associated goods.” In case of their resale there are two tax regimes which may be applicable: a one-time tax of 5.5% or a tax levied on capital gains at a rate of 34.5% with full exemption from paying it after 12 years of ownership.
Thus diamonds for individuals represent an alternative to traditional protected financial assets. On its part, InvestDiamond expects its newly born project will face a brilliant future. Two hundred investors have already become customers of this company, and in January Faure expects that number to reach one thousand persons.
Alex Shishlo, Editor in Chief of the European Bureau, Rough&Polished
