For a moment, put away savings accounts, bonds, and stocks, and pick up the idea of investing in diamonds, one of the best stones known to beat inflation. In fact, many financial analysts are terming diamonds as the next platinum or gold regarding increased values and demand in the marketplace. Of course, diamonds are also valuable for other things apart from the economic benefits.
It feels more personal and special when a diamond is passed from one generation to the next. Plus, women appreciate the emotional value of a sentimental piece that was previously owned by their mothers, grandmothers or even great grandmothers, and also a piece that has quite some history attached to it. While diamonds are a great investment opportunity, there is no way of putting a price on the sentimental value it creates in a family.
If you are ready to add these sparkly precious jewels to your investment portfolio, here’s what you need to know.
Back to the Basics
As a start, you do not have to go hunting for an exquisite colored diamond to make a smart investment. In fact, such diamonds are rarely traded and they do not carry the same resale value as you would find on the basic diamonds. The best diamonds to purchase as an investment should be within the D-H color scale and be rated as excellent or have a good cut.
Depending on your budget, purchase diamonds ranging from one to five karats. These types of diamonds are not only easy to find, but they are also easy to resell.
Check for Quality
A diamond’s price, at resale or upfront, largely depends on its quality. Make sure that as you buy a diamond, especially for investment purposes, the Gemological Institute of America (GIA) has certified it. The body is registered as a non-profit organization and has a research laboratory that follows strict guidelines when it comes to ensuring the quality of diamonds you are about to buy.
Always ask the seller to furnish you with a GIA certification for the particular diamond you are about to purchase. Experienced investors in diamonds will even go as far as hiring a third party to appraise the diamond to back up the GIA certification.
Go for the Classics
While purchasing an investment diamond, it’s critical that you pick one that will last for a long time. Should you purchase a loose diamond, opt for the cushion or round cut as opposed to the heart or pear shapes that are trendy cuts but with lower resale value in the future market.
If you are purchasing a piece of jewelry like a diamond bracelet or ring, ensure that you choose a timeless setting with symmetrical clean lines that will always be in style, safeguarding your investment.
Make Use of an Online Retailer
Maximize the profit you stand to make from your diamond investment by purchasing through an online retailer. Compared to retailers in physical stores, online diamond retailers offer you the best place for purchasing investment purposes diamond pieces because they have lower overhead costs.
Diamond retailers on venues like a diamond trading platform also have a wider selection compared to what you would find in the traditional jewelry store, meaning that you do not have to settle for the first piece you find.
Investing in diamonds is not as straightforward as dealing in other metals. This is because diamond trading takes into account things like clarity, color, cut and weight of the stone.
However, this should not be a primary concern since the proper guiding hand, and the increased worldwide demand for diamonds will certainly make your investment in the stones a smart choice.
