Diamond Pieces That are Worth Your Investment
When we invest our money, the only thing that we want to make sure is getting the value of what we are investing in.
That’s why investing in diamonds is as good as investing in properties, business, and other pieces of jewelry.
But like any other form of investment, diamonds are very valuable and offer greater security. However, certain types of diamonds also lose their value over time.
So what kind of diamonds are worth our investment?
Here, we tackle everything about Diamond pieces and how they can make our investment worth it.
Why Should You Invest in Diamonds?
There are many reasons why it’s a good idea to invest our money in diamonds.
Recently, diamonds just proved their security aspect for investment purposes.
They are protected against credit risks of financial institutions or banks, currency inflation, and currency fluctuation.
Moreover, a diamonds’ supply and demand indicate the structural increase of its value in the world market.
Let’s break down why diamonds are worth every penny:
● Long-term Profitability.
Recent studies show that diamonds have a further increase in value for the upcoming decades.
Diamond prices are increasing due to the trends of increasing demand and decreasing supply of diamonds.
● Safe Investment.
Diamonds are durable and indestructible. Investing our money in diamonds won’t go to waste.
They’re also secured against any crisis, both politically and economically.
● They are holder assets.
Diamonds represent the most significant value they could have, but they occupy a small space.
Diamond sellers can store their diamonds in a secured small area, and it’s easy to carry as well.
Unlike gold which has an equal value to diamonds — these will need to have a much bigger secured storage and weight capacity.
They even have a certification of free circulation that allows diamond sellers to sell them anywhere.
Gold is, however, traded through financial products, which create speculation and make the market unstable.
● Maximum Security through Certification. Diamonds are everlasting assets with a one-of-a-kind identity.
They are tested and verified through various laboratories that give full security to its owner.
The Gemological Institute of America (GIA) and the European Gemological Laboratory (EGL) are independent and professional laboratories that evaluate and grade diamonds for their quality.
Why do Diamonds have Intrinsic Value?
Intrinsic value refers to measuring an asset’s worth; thus, diamonds are evaluated and graded.
Here are the main characteristics in which diamonds are given their worth.
1. The 4 C’s
Diamonds are unique, and different factors affect the pricing for each one.
That’s why independent and professional gemological laboratories do their assessments to grade the quality of each diamond.
The clarity of a diamond refers to how many imperfections there are inside and outside the stone.
This indicates how clear it is; therefore, the more flawless the diamond is, the higher its value.
The GIA grades diamond’s clarity via six different categories:
❖ FL (Flawless) Diamond
❖ IF (Internally Flawless) Diamond
❖ VVS (Very Very Slightly) Diamond
❖ VS (Very Slightly) Diamond
❖ SI (Slightly Included) Diamond
❖ I (Included) Diamond
Different cuts of diamonds also affect its value — this is because every dimension signifies the sparkle and brilliance of the diamond.
Popular diamond cuts are round, square, oval, pear-shaped, emerald, heart-shaped, etc.
Jewelers carefully cut the diamond and stay close to the original weight as much as possible.
That’s why round cuts are more expensive than other ideal diamond cuts, and it is also the most in-demand cut.
Gemologists in the GIA use a color scale to grade a diamond’s color.
This is how the color is graded:
❖ Colorless – graded from D to F
❖ Near Colorless – graded from G to J
❖ Faint – graded from K to M
❖ Very Light – graded from N to R
❖ Light – graded from S to Z
Therefore, if a diamond is graded D-F, it means that it is more valuable.
However, there are colored diamonds that are worth our investment.
We just need to be particular about the color we’re interested in investing in.
The diamond’s carat weight is what determines its cost.
Although the diamond’s quality makes it valuable, the more heavy a diamond is, the more expensive it will be.
A carat is equivalent to 0.02 in grams.
Here’s how to choose a diamond based on a carat.
The certificate issued by the GIA or EGL gives us peace of mind when we make our investment in diamonds.
These gemological laboratories have the authority to grade precious diamonds.
The certificate contains the 4Cs and the symmetry of the diamond.
Which Diamonds are Best for Investment?
Diamonds that are worthy of our investment are the ones with the highest quality.
If compared to common diamonds in the market, investment-grade diamonds are more valuable.
Here are some of them :
The red diamond is the rarest. Only a few of these colored diamonds have been at public auctions and cost $1 million per carat.
Blue diamonds are also rare. And what makes a blue diamond unique is its conductivity.
When it comes to heat and electricity, they are the best conductors than any other substance on earth. This precious diamond costs around $300,000.
Graded as D-F in the GIA scale, colorless diamonds are well-known to be investment-grade diamonds as well.
Each carat can range from $1000 – $15000 depending on the other aspects of quality, such as the cut and clarity.
How Much is the Resale Value Of Diamonds?
Once you decide to invest our money in diamonds, you’ll be excited to know how much you’re going to get if you sell it in the future.
Resale value depends on where it was bought, how much it costs, and where or how you plan to sell it in the future.
Jewelry store-bought diamonds are more expensive than purchasing diamonds at a wholesaler or a diamond manufacturer.
So if you bought a wholesale diamond, you could mark it up to 20- 50% of its original value.
Is Investing in Diamonds a Good idea?
Before getting started on making investments, let’s make sure that we know what kind of diamond we want for investment.
Again, this is an investment, and we need to get something in return.
● Choose your preferred diamond. Choose a diamond where you can wait for 5-10 years to sell again. Wear it, enjoy it, but keep it in a secure place.
● Choose quality. Consider the 4Cs in choosing your diamond. The higher the quality is, the more value you’ll get from it. Don’t forget the Certification of Authenticity!
● Avoid Fake Diamonds. If your diamond is synthetic, laser-drilled, or color-treated, it will lose its value. So ask for the GIA or EGL Certification before you pay for it.
Points to Consider
Now we know the different kinds of diamonds we can invest in, it’s time to hit the road and buy those diamonds. In the next upcoming years, you’ll be able to enjoy the luxury of investing in these precious gems!
So stop spending, and start investing!
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