Diamonds will replace the euro from October 1

The Russian authorities expect that diamonds can become the best friends not only of girls, but also of those Russians who, before the special operation, had savings in dollars and euros. These currencies are now officially labeled “toxic” in Russia, and citizens are strongly advised to abandon them in favor of currencies of friendly countries, as well as alternative investment products. In the spring, the government abolished VAT on the purchase of gold by individuals, and from October 1, the same regime will be introduced for diamonds. Gemstones have certain advantages over money and bullion, but few seem to dare to “make friends” with them.

The participants of the Moscow Financial Forum were shown the crown of the Russian Empire with 11,352 diamonds for a reason – precious stones are now considered not just raw materials for the jewelry industry, but also reliable investments. According to Deputy Finance Minister Aleksey Moiseev, popularizing such investments through the abolition of VAT was his old dream. And now it has come true thanks to the unprecedentedly tough Western sanctions imposed in connection with the NWO. If earlier the Russians could “invest anywhere in the world in anything”, now the main tools are not available to them, the official explained. Accounts are frozen either on the principle of nationality (abroad) or involuntarily (within Russia). And even cash euros and dollars do not guarantee the safety of savings: a good example is the actions of the Finnish customs, which seizes currency upon entering the Russian Federation. “Therefore, now investments are limited to those products that are in Russia,” says Moiseev.

In this series, native wooden, which many, despite the significant strengthening of the course, continue to be treated with great suspicion. Currencies of friendly countries – for example, yuan, rupee, dirham, etc. (But, as discussions on the forum showed, even officials themselves, including presidential aide Maxim Oreshkin, are suspicious of them) And finally, quasi-currency instruments – primarily gold and diamonds. VAT on the purchase of gold by individuals was canceled in the spring. And going on vacation, the State Duma made a similar decision regarding diamonds – tax-free sales of these precious stones will start on October 1. “For investors, this is a real alternative to what we now call toxic currencies. We expect that, following gold, diamonds will take a significant share of investments that were previously directed to the dollar and the euro, – said a representative of the Ministry of Finance, noting that this asset has “stable international pricing, not associated with domestic risks.”

Other advantages of diamonds include beauty, rarity and portability. They do not need to rent safe deposit boxes, which, due to the withdrawal into cash, are now in great deficit. And when crossing the border, you don’t have to worry that someone will take away the stones, like the Finnish customs office of the euro. There is always an option to make jewelry and take out carats on your own neck. (In this regard, it is appropriate to recall Felix Yusupov, who for many years paid for his stay in France with the Pelegrin pearl and other family jewels taken out of Soviet Russia during his flight). Unlike money, which can be printed in any amount, diamonds (and diamonds, as you know, are cut diamonds) are finite. Moreover, new deposits have not appeared for a long time, and the old ones are gradually being depleted. Over the past two years, 10% of the global supply has been closed for this reason. On the contrary, demand has increased: for example, the Chinese, who were not previously interested in diamonds, have increased their share from 1.5% to 20% and are ready to buy more. “Therefore, the prices for these stones are far from peak values,” experts say.

To purchase diamonds without VAT, from October 1, you need to apply not to jewelry stores and not to mining companies, but to banks. There, the prices for stones will be denominated in dollars (so that the client can immediately see which quasi-currency asset he is purchasing), but the transaction is carried out in rubles. 42% of the world’s diamonds are mined in Russia, so there should be no problems with the assortment. Moreover, back in March, these stones, along with caviar, fell under sanctions and well-known jewelry houses refused to work with Russian raw materials.

At the same time, calls to invest in diamonds are somewhat similar to the famous words of Marie Antoinette: “If they don’t have bread, let them eat cake!” Unlike dollars, in which even some retirees opened deposits, gems are a product for the very select. Prices for large or rare colored diamonds start at $50,000 per stone. And the so-called “diamond basket”, developed as a banking product specifically for October 1, will cost from 25 thousand dollars. The basket will include small stones from 0.3 carats and with a single price per carat.

Bankers, speaking of potential investors, honestly admit that these are wealthy people – they can afford to buy a small apartment without a mortgage and a good car without a loan. As part of private banking, investments in diamonds have been promoted for 4 years already: from this experience, it is known that people with assets over $1 million are mainly interested in stones. And the abolition of VAT will not change much here. “This is just convenient for those who used to buy polished diamonds without VAT abroad, and now they can do it in their homeland, especially since travel abroad is now limited,” market participants explain. According to them, such investments have always been popular among officials and deputies who cannot show their accounts to the public.

However, all the advantages of investing in diamonds are offset by the disadvantages that appear when jewelry needs to be turned into paper money. It is generally not realistic to sell small stones at a profit (for example, now they cost less than ten years ago). And the pricing for large ones depends on the gemologist’s assessment, which is largely subjective: different people can characterize the same diamond in different ways, and its value directly depends on this. In addition, diamonds cannot be exchanged back for rubles in any exchanger, like toxic currencies. With rare specimens, you will have to go to auctions (with all additional costs). As for the “diamond baskets”, they are provided with a buyback procedure “at the market price with a not very offensive spread.” Translating into understandable language – at a discount. It is difficult to predict what it will be, but for example, when banks buy gold, losses can reach up to 30%.