The Belgian city of Antwerp has always been known for its diamond market, Antwerp is the perfect place to buy a diamond.
Buying diamonds in Antwerp
In Antwerp, one is sure to find a suitable diamond; this port located in the north of Belgium represents the peak of the global gem trade. Known for over 500 years as the world diamond capital, Antwerp has initially been specialized in the cutting and polishing of various stones. The city is now specializing in the trade of rough stones. 84% of rough diamonds and half of all polished diamonds in the world transit through this city.
The Flemish city would count more than 1.500 companies working in the diamond industry. The famous diamond district is the supreme place of the diamond market. It is near the central station and is bordered by the streets Hoveniersstraat, Schupstraat, Rijfstraat and Pelikaanstraat.
How do diamond bourses work?
It is within the diamond bourses that the purchase and sales of diamonds happen, be them polished or rough. There are 29 bourses around the world and they are all grouped in the World Federation of Diamond Bourses. Access to these clearing houses is very strict. You must be a member of the bourse in order to trade. This is the federation which defines the trading practices of diamonds. The World Federation of Diamond Bourses also sets diamond grading standards, in collaboration with the International Association of Diamond Dealers.
The city of Antwerp is home to four major bourses in the world, including two that are centuries old: Diamond Club of Antwerp for rough and polished diamonds and Diamond Bourse for polished diamonds. The other ones are Diamond Kring for gemstones and rough diamonds and Vryes Diamant Handel for rough and polished diamonds. A vast majority of rough diamonds sold worldwide are traded within these bourses.
The various cities with a diamond stock exchange are among others London, Paris, Milan, New York, Los Angeles, Miami, Tel Aviv, Johannesburg and Moscow.
Diamond: the new safe haven for investors
In recent years, the diamond itself has become a real safe haven. Diamond is becoming a real alternative to gold.
A long term investment
The diamond is presented on the international scene as an ideal diversification product. The diamond is not influenced by exchange rates unlike gold; diamond has a certain stability which makes it a refuge kind of investment, increasingly sought after. Indeed, with continued uncertainty in the financial markets, investors need a solid investment.
Spurred by strong demand coming from India, Turkey, the Gulf countries and especially China, the price of diamond is bound to increase in the coming years. Especially since the existing mines are beginning to dry up and new deposits are becoming harder to find.
Anyway, the diamond is mostly a long-term investment; its course becomes more valuable with time.
Investing in diamonds, an alternative to gold
During the past decade, gold has attracted many investors. One study showed that 60% of French consider it as a good investment. Only investors are beginning to look more and more into diamonds, so analysts agree that the next 10 years will be crucial for this mineral.
Investment in diamond has several advantages compared to gold. First, the exchange rate has no influence on the course of the diamond, which is not the case for gold. In addition, this mineral is accepted as a currency worldwide. If the price of gold has increased in recent years, it is difficult to predict whether this growth will continue in the future. However, for the diamond the increase in value over time is a certainty.
Finally, it should be noted that an investment diamond must always be accompanied by a certificate issued by an independent laboratory as the US laboratory GIA, the Gemological Institute of America. If needed, BAUNAT offers appointments at its showroom located in the heart of the Antwerp diamond district.