A hallmark of the world’s best diamonds
The Rapaport Diamond Certificate is designed to identify the best diamonds in the market while providing the trade, investors and consumers with the highest level of confidence in quality. Rapaport Certification enhances the ability to trade diamonds electronically and enable new highly liquid and efficient investment diamond markets
Comparing Tangible Investments
During the past 30 to 40 years, a number of financial advisors and individual investors have increasingly looked for alternatives to diversify the traditional asset classes of stocks, bonds, real estate and cash. In this re-evaluation of alternative solutions to risk management and portfolio construction, attention has turned to the inclusion of a number of tangible asset categories, among them: Fine Art, Gold and Diamonds.
“Is there a way to invest in diamonds, on a centralized platform with competitive bid/ask sales where the buyer can be assured of a transparent, unambiguous and standardized set of criteria”
Demand is global in nature, and diamonds worth many millions of dollars are traded every year on a number of platforms for a variety of uses. According to Bain & Co (The Global Diamond Industry 2016), the outlook for the diamond market remains positive for the long-term. They project rough-diamond demand to grow at an average annual rate of about 2% to 5%, while supply will decline by 1% to 2% per year through 2030. The main diamond markets are the U.S. (accounting for 30%-40% of the global market), China, India (the fastest growing market), Japan and Europe.
Like their counterparts, Diamonds are a precious commodity, offering a highly concentrated store of value and a hedge against inflation, while providing added diversity to a traditional investment portfolio. Currently, in the global diamond market, investment diamonds represent only 3% of annual production, whereas gold is at 40%. These numbers would indicate an upside potential for demand in Diamonds as investments.
Historically, the major disadvantages of investing in Diamonds have been similar to Fine Art and FCDs: illiquidity, price ambiguity, lack of standardization and transparency, as well as, very importantly, the need for certification and expertise. The Gold investment market, in the form of standardized and relatively transparent prices for bullion and coins, has solved, to a certain extent, these main problems.
So, what about Diamonds? Is there a way to invest in diamonds, on a centralized platform with competitive bid/ask sales where the buyer can be assured of a transparent, unambiguous and standardized set of criteria, which includes a quality certificate from a reputable laboratory? Can we then define “investment-grade” Diamonds as those meeting certain quality and size specifications that also include excellent cut, polish and symmetry?
Rapaport Certified Diamonds
“Ensures the diamond is of the finest quality and has enhanced market liquidity”
Rapaport has set the new industry standard for diamond quality. The certificate is only available for diamonds that meet stringent Rapaport gemological and investment grade standards. It ensures the diamond is of the finest quality and has enhanced market liquidity.
All investment diamonds certified by Rapaport must be first graded by the Gemological Institute of America’s independent diamond grading laboratory. Only round diamonds, graded in the top five colors (D-H) and top five clarities (IF-VS2), qualify for the next step in the Rapaport certification process.
Following the GIA grading process the Rapaport gemological team takes over. Every aspect of the diamond is authenticated to ensure it meets Investment Grade Standards. Diamonds with borderline color and clarity grades are rejected as are diamonds with gemological or visual properties that impact price and reduce market liquidity.
Finally upon approval, the diamond is stamped Investment grade and a Rapaport Investment Diamond Certificate is issued.
Rapaport certified diamonds are the best in the market and offer traders, investors and consumers with the highest level of confidence in purchasing quality diamonds. Rapaport Certification enhances the ability to trade diamonds electronically and enable new highly liquid and efficient investment diamond markets