Ask Paul: We paid $6000 for an ‘investment diamond’

Q. We are a retired couple in our late 70s living the good life in a country town. 

We own our home and are living happily on our super and part aged pension. Our wills are updated and we are working our way through a "letter of wishes" document we downloaded from the internet (with the knowledge that this document is not legally binding). 

In 1978, we purchased an investment diamond for $6000, which we still have in our possession.

We would like to sell it but do not know where to turn. We've researched online but have drawn a blank. We would appreciate any help you can give. - Cathy and Gary

Hi, Cathy and Gary, I am delighted that you are enjoying life in a country town. I grew up in Griffith in the Riverina and have great memories of living in a regional town.

Hard assets such as gold, silver, diamonds and so on have been a popular store of wealth for centuries. Their portability and size make them attractive to many, in particular in unstable regions.

I am no expert in this area, so I "phoned a friend" who specialises in this. He tells me that, with interest rates being so low and a general concern about the amount of money being printed due to the Covid-19 crisis, hard assets such as diamonds are selling quite well.

He put me onto some of the auction houses selling diamonds and jewellery sales.

I had a look at one, First State Auctions, and was interested to see a range of gemstones and jewellery selling pretty much in the price range estimated by the auctioneer. The key, it seems, is a recognised grading certificate, such as one by GIA or GSL, that needs to come with the diamond.

This may be an option you would like to consider. It certainly would be valuable to get a price estimate from the auction house - it can do this based on the certificate.

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