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How to choose a coloured investment diamond?

Always start with the budget you have available. Based on a fixed budget (ex. € 5.000), you can make the choice to invest in one diamond of € 5.000 or two diamonds of € 2.500 each.

 

Rare

Coloured diamonds are rare. We can divide them in the following price ranges (that logically correlate to their rarity):

  • Basic coloured diamonds: Brown, gray, yellow
  • Medium coloured diamonds: intense en vivid yellow, orange hues
  • Expensive and rare coloured diamonds: pure orange, green, purple, pink and blue
  • Red diamonds: out of category

To get some perspective and to clarify that even though brown diamonds are categorized as “basic” and are relatively common, there is nothing “common” or “basic” about a 10 carat brown diamond with VS clarity… Also keep in mind that this division into categories is very general. There are hundreds of different kinds of coloured diamonds and each specific colour means adjusted pricing.

In your quest to finding the perfect investment diamond, the ultimate goal is always to find a diamond – within the budget – that is sought after and still not too rare or special that there would be no demand for it in the future. We like to give you a few basic pointers.

Certificate

We gave addressed this matter extensively in previous articles, so we will readdress this here only very briefly. Make sure the diamond comes with a certificate. It is the only way to really know what you are buying. The person you will sell it to later will want to see the certificate as well.

Fluorescence

Fluorescence in yellow diamonds that are purchased as an investment diamond is taboo. Even though at first sight, they often come with interesting price drops, they are not suitable as an investment. In other coloured diamonds however, fluorescence is not relevant.

Clarity

Diamonds with a lower clarity are much less sought after on the investment market. Coloured diamonds with a low clarity have their audience, for sure, just not as an investment diamond. Because we are still looking for a good coloured investment diamond – and since we are not diamond collectors – diamonds with a lower clarity are not a good investment option. They are too hard to sell. The best price/quality ratio lies with VS2 diamonds.

Shape

Some shapes are more wanted than others and that shape will therefore be easier to sell. Irregular shapes, like triangular shapes are not suitable as an investment diamond. Regular shapes like round, oval, princess cut, heat shape and marquise are more suitable. However there are hardly any round coloured diamonds out there, because it is harder to maintain the colour in round diamonds. Suppliers of coloured diamonds often prefer oval diamonds. It is for this reason that round coloured diamonds are much more expensive.

Colour

For the colour we can simply state: the more intense, the better. Try to aim higher than the “fancy” yellow diamonds and go for intense yellow diamonds. In the higher categories, the intense blue diamonds are very much sought after. In lightly coloured diamonds like pink and green, the colour is harder to detect, thus making these diamonds less suitable as an investment diamond.

Taking into account the pointers above, there is still a wide array of potential coloured investment diamonds available. BAUNAT DIAMONDS will assist you in your choice with personal advice.