Is it Good to Invest in Diamonds?

by Francis Alukkas | 22 September 2021 | DIAMOND JEWELLERY

Diamond, as an investment, has always raised a number of questions on whether it is good to invest in diamonds. The question comes from a place where the resale value of diamond or stone was not as equivalent to gold and others for a long time. Also, the fact that stone studded jewelry is made of less pure gold forms such as 18kt and 14kt added to the raising question; is it good to invest in diamonds?

Why were diamonds not as preferred as that of gold ornaments before?

The reasons are as clear as those mentioned above. Earlier diamonds were not considered a good investment as it has low resale value. There was a stigma aligned to it, which made it approachable and affordable only to the elite community. Also, the superstitious factor connected with the un-auspiciousness of impure diamonds further affected the diamond market, leaving an unanswered question, ‘is it good to invest in diamonds?

Investing in Diamonds vs. Gold

With the purity certificate in action, there is not much difference between investing in diamond vs. gold. Diamonds, just like gold, have an equivalent value as of the market. Furthermore, unlike gold that fluctuates more with concern to the change in the stock market, trends indicate that diamonds’ value appreciates consistently. This, having said, makes diamonds a more predictable investment than gold.

Diamond Investment: About

Diamond investment in recent times has increased with a greater demand for diamonds and gems manufactured and polished in nearby countries like Thailand. With more and more people acknowledging the benefits of investing in diamonds vs. gold, a shift in consumer behavior is observed. The stigma related to diamonds has changed in recent times with the rise in the production of machine cut diamonds and investment-grade diamonds that come along with a certification assuring the exact resale value, as the value of the diamond on the selling diamond.

Investment Grade Diamonds

Investment grade diamonds are those polished to the highest standard, GIA Triple Excellent and are of the color, size, and purity that are globally in demand for engagement rings, making them the most desirable and resalable. The value of invest grade diamonds rarely depreciates and costs more than that of the common diamonds. This is because of the quality of the Cut, Clarity, Color, and Carat weight.

Also, Read: Tips for Buying Diamond Jewellery Online

Qualities of Investment Grade Diamonds

The quality of the investment-grade diamonds is defined by the said 4 C’s, namely, Cut, Clarity, Color, and Carat weight. It is this quality of these 4 C’s that identifies the value of the diamond you purchase. The assessment of the 4 C’s are done on different scales with cuts assessed to be Triple Excellent, Excellent, Very Good, Good, Fair or Poor, color is graded between the letters D and Z, Carat refers to the weight of a diamond, and clarity grades of F – Flawless, IF – Internally Flawless, WSI – Very, Very Slightly Included, VSI – Very Slightly Included and SI1 Slightly Included.

Diamond Certification

Diamond certification is a paper certificate given by a third-party, providing physical proof that a reputable and objective laboratory has appraised the diamond. It is essential that you receive a paper certification for any diamond jewelry purchase as it is this paper that would avail you full resale value.

Are Diamonds a Good Investment in 2020?

The demand for diamonds has exceptionally increased over the past few years. It is the rarity of diamonds and the forever demand that makes it more valuable over time. Unlike gold, there are several factors that impact the pricing of diamonds. A thorough understanding of which will benefit you more than that of the gold investment itself. Of course, one cannot compare a gold investment with that of diamond investment as the nature of investments is different. With fewer mines in production and the increased demand for diamond jewelry, the value and the forever promise of diamonds are assured, making them one of the best options to invest in 2020.

Also, check: Guide on How Gold Ornaments Price is Determined

However, the choice of the best type of investment, in the end, runs down to your understanding and wants that defines whether or why it is good to invest in diamonds?

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