Diamonds have posted investment returns for the last century Courtesy of DIC PL

A growing number of Polish investors are sheltering their money from the financial crisis by investing in diamonds. According to P½emysl Synek, general director of Diamonds International Corporation (DIC), the price of diamonds has risen for the last 100 years and annual growth on the global diamond market has come in at between three to seven percent over the past 20 years.

“Every wise investor diversifies his wealth and diamonds are one means of investing money; they are considered the second safest [investment] after gold,” said Synek, whose Czech-based company was established in 2005. Its Polish subsidiary was launched a year later.

In mid-2007, when the first signs of a global slowdown started to become visible, the diamond industry noted a significant rise in demand. Then in 2008, due to the falling US dollar, diamond prices jumped by as much as 50 percent, according to Synek.
“At the end of last year the yield stabilized at nine percent annually, which can be considered a success, given the crisis circumstances,” he continued.

David Franke, CEO of DIC PL, explained the appeal of diamonds. “They are a world currency, can be capitalized quickly and are hard to destroy. Plus diamonds are a symbol of fashion, success and social status,” said Franke.

Investments can start at a one carat gem, and a stone’s cut, color and clarity are all taken into consideration when assessing its value. For example, a high-quality four-carat stone is worth around €120,000 (zł.563,800).

Asked about negative associations with diamonds, particularly African “blood diamonds,” the company explained that it is a member of the Antwerp Diamond Bourse (Beurs voor Diamanthandel), which carefully monitors the source of diamonds.