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When people talk about investing in jewellery or precious metals, you will notice that the advice is always to put all the money in gold. Generations have relied on gold, especially yellow gold, for its regulated purity standards and high return value. DIamonds have become a greatly enjoyed piece of jewellery and would make for a smart investment if one knows the factors to keep in mind when investing in diamonds. Over the years, the sale of diamonds has increased rapidly, and there are globally established standards to assess the rarity of diamonds, primarily done by the GIA (Gemological Institute of America). The GIA introduced important factors like the clarity, cut, carat, and colour of a diamond, which should be kept in mind before making an investment.
Is it worth investing in diamond jewellery?
Some of the noted benefits of investing in diamond jewellery are that they are very small in size and therefore do not require a lot of space for storage. They can be used as a means for transfer as even the smallest of diamonds can be worth up to easily a million dollars. Diamonds are also very durable. You can customise them into a pair of earrings, a ring, or a diamond necklace, which means while it is a sound investment, you can also wear them as an accessory. Moreover, you do not have to be concerned about it getting damaged as a diamond is reportedly one of the hardest substances on our planet.
Does diamond jewellery have resale value?
Everyone makes an investment hoping that the product appreciates in value and provides them with great returns. Now when it comes to the resale value of diamonds, you need to know the specifics of the diamond market. You should be familiar with the 4C’s of diamonds which are cut, clarity, carat weight and colour. A good diamond investment would be buying diamond pendants or diamond earrings which have been certified at an accredited lab. Diamond rings are the most common investment jewellery that people make, usually engagement rings. Any kind of diamond jewellery which has been certified and analysed can help you get a higher resale value. It is important to note that buying diamonds is an extensive process, and if you want to make the best investment, you should be prepared to do the required research and analysis.
Which diamond is best for investment?
When making an investment in diamonds, it is important to make sure that you make the correct choice. Buying diamonds that are commonly available in the market will not give you good returns over the years, as the more readily available a commodity is, the lesser is its value. It is important to invest in rare diamonds to ensure that you can get a higher resale value. For example, investing in diamonds that are not found near the surface or coloured diamonds will give you a much higher resale value and are also much better investments. There are also colourless diamonds that are ranked based on their clarity. A pure diamond would have the rank of D, whereas a diamond with the rank Z is highly impure. The rarest and most expensive diamonds are the ones that appear in fancier colours like red diamonds, blue diamonds, pink diamonds and yellow diamonds. Another important thing to keep in check while investing in diamonds is making sure that the clarity of the diamond is graded as flawless. That will help the resale value of the diamond increase exponentially.
Do diamonds go up in value over time?
To make sure that the diamond you invested in has a higher resale value, you need to keep some factors in mind. It is important to ensure that you select a rare diamond or a high-grade diamond of good quality to get good returns on your investment. The value is bound to go up if you have a diamond that is not very easy to find. Rare diamonds are coloured. An example of the rarest diamond found is the red diamond, costing up to one million USD. A rare diamond will appreciate over the years and yield a higher resale value.
Which has more resale value, diamond or gold?
As established before, you may lose out on your investment if you look for quick returns and invest in the wrong kinds of diamonds. Examples of low-quality diamonds with little resale value are those with a rank below D. Your resale value would dip considerably. When we look at gold, returns are almost always ensured. Gold prices fluctuate daily, and investing in gold is one of the most popular ways to make sure you get good returns on your investment too. If you wish to play the market and get a higher resale value, go for investing in rare diamonds, as diamonds are known to have a retention capability that is strongly valued. To ensure that you have a diamond that will fetch you a high resale value, you should keep in mind the 4Cs: cut, colour, clarity, and carat weight. A high clarity, rare-coloured diamond with high carat weight and pristine cut would be a good investment.
FAQs
Are diamonds truly rare?
Generally speaking, diamonds are not really that rare. As compared to other precious stones, they are actually one of the most commonly occurring stones out there. The price depends upon how rare the diamond is; the rarer the diamond, the more it costs. Rare diamonds are those that are coloured as they are harder to mine. Red, blue, pink and black diamonds are some of the rarest diamonds in the world.
What should we ask for if we are buying diamond jewellery?
There are many things one should keep in mind while purchasing a diamond. The most important factors to remember are to make sure that the diamond is certified by a genuine lab.
Is diamond a good investment in India?
Currently, diamonds can be a great investment for citizens in India because, unlike gold, diamonds do not have a fluctuating resale price. The resale value of the diamonds remains stable and makes it a preferred alternative to investing in gold.
What are the benefits of investing in diamonds?
There are numerous benefits of investing in diamonds, the main ones being that they can be enjoyed as jewellery even though they are an investment. The price of diamonds is not dependent on any government laws but on the 4Cs mentioned before, which are cut, clarity, carat weight and colour. Even through market crashes, the value is not affected significantly. They are very durable and won’t be damaged easily. They are very small in size and do not require storage or maintenance fees, which means that there are no maintenance costs.
How do I value my diamond?
You can take your diamond to a trusted jeweller or an expert, where it can be lab-tested and certified by accredited organisations. You can also do market research and look up the prices of other diamonds in the market that are of the same quality, colour grade and cut as your diamond.
Article written by Nilesh