DIAMONDS

Investing in diamonds can be a smart move.
However, it requires knowledge and caution.
Below are some important points to consider.

1. Quality: The 4Cs

Diamonds are evaluated based on:

Carat – The weight of the diamond. The larger the diamond, the rarer and more expensive it is.

Color – The less color, the more valuable the diamond. Graded on the D–Z scale (D is colorless, Z has a yellow tint).

Clarity – Fewer inclusions and imperfections result in a higher value.

Cut – A well-cut diamond reflects light better and is therefore more valuable.

2. Certification

Only purchase certified diamonds from reputable laboratories such as:

  • GIA (Gemological Institute of America)

  • HRD (Hoge Raad voor Diamant)

  • IGI (International Gemological Institute)

3. Fixed or Tradable

Decide whether you are buying loose diamonds or jewelry.
Loose, certified diamonds are generally better for investment purposes because they are easier to trade.

4. Supply and Demand

Rare colors such as pink, blue, and red often increase significantly in value.
Industrial diamonds are usually less attractive for investors.

5. Reliable Sellers

Buy from reputable dealers, auction houses, or diamond exchanges (e.g. Antwerp).

6. Storage and Insurance

Diamonds are small and valuable, so secure storage and insurance against loss or theft are essential.

7. Taxes and Regulations

Research the tax rules in your country.
In some countries diamonds are tax-free, while in others capital gains tax may apply.

Loose Diamonds as an Investment

Loose diamonds are easier to trade and often retain their value better than jewelry.
Below are additional tips specifically for investing in loose diamonds.

🔹 1. Choose the Right Type of Diamond

White diamonds (D–F color, IF–VVS clarity) are classic and easy to resell.

Fancy colored diamonds (pink, blue, yellow) can increase dramatically in value but are rarer and harder to sell.

Investing in one larger diamond (1+ carat) is often better than buying several smaller ones.
Large, high-quality diamonds are rarer and more valuable.

🔹 2. Buy Only with GIA or HRD Certification

GIA is the strictest and most respected certification.

Avoid undocumented diamonds or those with “in-house certificates”, as they may be overpriced.

🔹 3. Pricing and Value Growth

Rough diamonds are difficult to trade; cut diamonds are more valuable.

The diamond market is less transparent than gold or stocks, so purchase only with proper price knowledge.

🔹 4. Secure Storage and Insurance

A bank safe-deposit box or specialized precious asset storage is essential.

Always insure the diamond against loss or theft.

🔹 5. Where to Buy

Antwerp is the diamond capital of Europe and often offers the best deals.

Buying online is possible, but only through trusted jewelers and auction platforms such as Sotheby’s or Christie’s.

✅ 6. Be Patient When Selling

Diamonds generally increase in value more slowly than gold or stocks.

Plan for the long term (5–10+ years).

Sell through a reputable dealer or auction house to achieve the best price.

✅ Is There Tax on Diamonds in Belgium?

Yes, Belgium has specific tax rules for diamonds, largely due to the country’s important diamond industry in Antwerp.

Here are the key points:

1. No VAT on Rough Diamonds

Rough diamonds are exempt from VAT (21%), as they fall under special diamond regulations.

2. Diamond Tax (Carat Tax) – Companies Only

Belgium applies a “Carat Tax” of 0.55% on the turnover of diamond companies.
This tax does not apply to private investors.

3. No Capital Gains Tax for Private Individuals

If you invest in diamonds as a private individual and later sell them at a profit, no capital gains tax is generally due, provided this is considered normal management of private wealth.

⚠️ Note:
If you buy and sell frequently (like a trader), the tax authorities may classify this as a professional activity, in which case taxes will apply.

4. No Withholding Tax or Annual Tax

Unlike real estate or shares, diamonds are not registered assets.

This means:

  • No annual ownership tax

  • No withholding tax, as long as they are held privately

5. Inheritance Tax

Diamonds are subject to standard inheritance tax when passed on to heirs.

 

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