Why is it, that in spite of such a phenomenal ROI on investment diamonds, very few financial advisors recommend it as an investment?
There are various reasons: sometimes they are simply uninformed; they must abide to prescribed investment categories; and, they must follow legal criteria as required by the authorities. Willa Schoeman Diamond Investments is one of the few diamond investment houses in South Africa with all the expertise needed for the best overall advice for potential diamond investors. We are not financial advisors but can show our clients the real growth in various other commodities and how they compare with diamonds.
For how long must I keep my investment diamond before it can sell for a profit?
Investment Diamonds are a medium/long-term investment. Minimum recommended period is 5 years.
How and where do I sell my investment diamonds?
Willa Schoeman Diamond Investments offer a resale service for all diamonds bought through our group.
Can I use my diamonds as security for a loan at a Financial Institution?
Banks and other financial institutions normally do not take diamonds as security.
What is the comparison between jewellers and Willa Schoeman Diamond Investments when it comes to the mark-up on the price I pay for diamonds?
Jewellers are RETAILERS whereas Willa Schoeman Diamond Investments is a WHOLESALE business, selling investment grade diamonds at below International wholesale prices.
How long has the principle, Willa Schoeman, been in the diamond business?
For over 40 years. He started his own diamond business, Tirsa Diamonds (PTY.) LTD in 1975. As family they have been connected to diamonds since the late 1920s. Koos Jonker, a family member discovered the well-known Jonker Diamond weighing 726 carats, which is the 8th largest diamond ever to be found in the world.
Is Willa Schoeman qualified to give professional advice about investment diamonds?
Willa Schoeman graduated from the Gemological Institute of America in 1979. He is not only a true "diamonteer" but also a recognised international businessman and entrepreneur.
Are the price of diamonds inflated?
No. On average 20 tons of Kimberlite (Diamond bearing) rock must be mined, crushed and processed to recover 1 carat (100 points) of rough diamond(s). In the cutting process about 50% of the rough diamond is lost (depending on the shape of the diamond) thus leaving about half a carat (50 Points). Thus, about 20 tons of rock must be processed to yield half a carat polished diamond. The exploration process is very costly. Another factor is the huge capital amount needed for infrastructure to set up a diamond mine. Taking these factors into account one would find that diamonds represents true value and an excellent investment option.
How does inflation affect the diamond prices?
Investment diamonds are an excellent way to nullify the devastating effect on the buying power of the South African currency. Remember, this is an investment into a hard asset and not in paper money, making it 100% resilient against inflation.
Where can I keep my diamonds safely?
The best place is a private vault at your bank. While most banks offer this service, not all their branches have the facility - it's best to check this out with your bank manager. They charge a nominal annual fee for this service.
What about insurance?
Insurance premium on any valuables is normally high without a specific description of the item and forms part of your "all risks" policy. We, however, recommend the bank option because the risk is lower and you don't need to have the diamond(s) in your possession unless you want to sell it.
How can I be assured that the diamond(s) I receive with the certificate corresponds with the information on the specific certificate from the international, independent laboratory?
It is easy to have your diamonds verified at the specific lab for authenticity. If so, Willa Schoeman Diamond Investments will pay the cost of verification. In view of this, it is non-negotiable that you choose your diamond supplier with the utmost care. Choose a business with a proven track record of integrity, transparency and great professional service combined with excellent prices. Make sure the principal belongs to the professional institutions that act as a watch-dog over this industry and protect your interests as buyer.
Is it a requirement for all diamond dealers to belong to these Institutions?
No. However you can be assured of the highest business ethos if your supplier belongs to these Institutions. If you are not perfectly satisfied with any transaction you can approach these institutions and if the member did not act according to their high standard and is guilty of any questionable business such a member will be suspended. It is thus of paramount importance to be sure that your supplier belongs to the Diamond Dealers Club of South Africa, the Jewellery Council of South Africa, and the International Federation of Diamond Bourses!
Is Willa Schoeman a member of these institutions?
Yes, he belongs to all 3 the above mentioned institutions.
Where is the source of the diamonds sold by Willa Schoeman Diamond Investments?
Mostly South Africa but some of the diamonds also have their origin in Lesotho, Angola, The DRC and Botswana.
What are contributing factors to the value of a diamond?
You will find a detailed explanation elsewhere on this website. In short it is known as the "4 Cs" - Carat weight, Colour, Clarity, and Cut. However Willa Schoeman Diamond Investments added another 2 C's, Certification and Confidence - Confidence in your supplier, and confidence that your diamonds are graded and certified by one of the independent, international diamond grading laboratories.
