Do you know which diamonds are the best investment?

  • The cut of an investment diamond
  • Colour and carat
  • Is the purest diamond the best investment?

The value of gold is determined based on its weight and its price based on the supply and demand of the market. Those who want to make the best investment on the diamond market need to keep a lot more than just weight in mind during the purchasing process. The unique character of each diamond is dependent on the following parameters: the 4 C’s.

The cut of an investment diamond

To which degree a diamond sparkles and shines largely depends on the shape and quality of the cut. The proportions, the polish as well as the symmetry fall under ‘cut’. With large diamonds, it can takes weeks or even months to calculate the best shape and method of cutting. When a diamond is cut well, almost all the light will enter it through its crown. If the diamond is cut to shallow or to deep, the light will escape through the bottom or through the side of the diamonds, instead of being reflected back through the crown. Diamond cuts other than the round cut, such as the pear cut, the emerald cut, the oval cut, the marquise cut etc. are called ‘fancy’ cuts.

Colour and carat

The rarest colours are the pronounced and vivid hues of orange, pink, green, blue…These rare varieties are called ‘fancy’ colours and are often less suited as investment diamonds. The market for these kinds of diamonds is rather small because of their high price point, which means that both the purchasing and selling of these diamonds will be a time-consuming process. Almost all colour hues between white/ colourless and fancy yellow, however, are suitable as investment diamonds.

Carat is the weight unit for diamonds. 1 carat equals 0.2 grams and is expressed in 100 points. The correlation between carat and price is exponential, because the higher the carat weight, the more unique a diamond is. An investment diamond of 3 carats is not three times, but five times more valuable than a diamond of 1 carat. The most accessible and best investment is thus a diamond with a white or yellow colour, with carat weight up to 2 carats.

Is the purest diamond the best investment?

Not only the cut, but also the clarity of a diamond has a considerable impact on the effect of light in a diamond. 99.99% of all diamonds has ‘impurities’ or inclusions. These ‘birth marks’ characterise the diamond and determine how much light enters the stone. Impurities such as dark spots, clouds or little fractures are considered internal flaws and they make the diamond unique. Diamonds without external flaws are the best investments. External flaws are often caused by wear and tear or damage during the cutting process.

BAUNAT DIAMONDS stands for high quality investment diamonds by putting the different quality requirements first. This BAUNAT proposition increases the chance of profit during future resale. Our experts will gladly advise you during the process of purchasing your diamonds. Please feel free to contact us.

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Author: Daan Deruyter

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