Diamonds are Anyone’s Best Investments: Jeffrey Rackover


 Diamonds hold their value equally in all global markets, and, best of all, they are transportable.

We live in a world where people love to collect. Throughout the ages, people have defined themselves through the accumulation of worldly possessions, whether it be a collection of coins or cars, stamps or antiques. In the luxury sectors, people have been known to collect real estate, art, and diamonds. As such, we have seen the art of collecting metamorphose into long-term investment opportunities.

There is no time like the present to begin investing. People love to acquire tangible beauty and love even more to see the value of their beloved possessions appreciate-whether that valuable possession is a Monet, waterfront property in the Hamptons, or a perfect 20-carat diamond.

History has proven that while diamonds (just like real estate) may experience slumps, they always regain their value. That value has exponentially appreciated in the past five years. While this has made many people weary of investing-as they think they missed the prime opportunity-with the markets as they are, this appreciation trend is going to continue.

Now is the perfect time to invest. Three years ago, I sold a flawless 50-carat pear-shaped diamond for $90,000 per carat. Today that same diamond would go for $220,000 per carat, and that value will only appreciate even more in the next five years. It actually makes me wish that I had invested more heavily in the past.

It doesn’t matter how small you start, because it is never too late to jump into the market, and there is always room to upgrade. Though the dollar might not be particularly strong right now, wealth in Russia, China, and Arab countries is sustaining market values until the dollar regains its strength.

Diamonds are one of the most solid investment choices on the market. Take a hedge fund, for example, which generally offers one to 18 percent returns on investments. If someone invested in diamonds the same time they invested in a hedge fund, they could expect a return of 300 to 400 percent. You do the math-what makes a better investment?

Diamonds hold their value equally in all global markets, and, best of all, they are transportable. You can’t put a condo in your pocket and bring it to another country to sell. And even if you could, it wouldn’t hold its value. And when you take into account that virtually everyone, everywhere in the world loves diamonds, there is no room for doubt that diamonds are a sound investment.

Recently, I have seen a major increase in the recycling and resale of diamond jewelry. Women often say that their diamonds have “shrunk,” or they simply have tired of wearing the same pieces. Eventually they ask, “How much can I get for this old piece, and how much of that can go to a new one?” Or, they come to me and say, “Let’s take these diamonds and do something new with them.” Therefore, these pieces of immense value are not only beautiful and serve as family heirlooms for generations to enjoy, they also provide comfort and some major financial security.

The collective beauty of this industry is that, like any piece of art, each diamond is a story and I think that’s what people really respond to. Men enjoy learning about the history of the gems, where they came from, and what defines their quality, while women enjoy wearing them.

People love jewelry and always will; diamonds are truly transcendent and this is their allure, especially as a solid investment. I cannot emphasize enough that this is a truly exciting time for both buyers and sellers alike, and I encourage anyone to invest. Put size aside. Whether it’s one carat or 20, it’s an investment that will last a lifetime.

Jeffrey Rackover
589 5th avenue
New York, NY 10017