Investing in diamonds: are diamonds forever?

  • When investing in diamonds, you have to give attention to the quality, the weight, the proportion and the colour of the diamonds.
  • How does it work with the pricing of diamonds?

Because of the low interest rates on other investment products, the investor looks for products with higher returns. For individuals, investing in diamonds doesn’t seem obvious. We highlight some tips and give you some points of view.

Quality

The best investment diamond is not necessarily a diamond of the highest quality. You better choose for a good price/quality ratio. If you want to invest in a diamond of the highest quality, we advise you to opt for bigger diamonds.

Weight

The weight of a diamond is measured in carat. You should choose diamonds between 1 and 5 carat and not necessarily the heaviest and most expensive diamond. Diamonds between 1 and 5 carat are much easier to resell.

Proportion

Diamonds must have a proper proportion. Stones without de right proportion can look glazed, whereby the price drops. When investing in diamonds, you best choose for a cut, polish and symmetry of at least VG (= Very Good).

Colour

The more white the diamond, the more value it will have. However, coloured diamonds are becoming more expensive. They are very rare and the demand for it is steadily increasing.

Price

People often act mysterious about the price of diamonds. It is true that there is no monopoly, but you can still compare diamonds online.

The price is expressed in US dollars per carat. The price also increases as the diamond is heavier. For example, a brilliant of 3 carat doesn’t cost three times as much as one of 1 carat, but five times as much.

There is also a certification system, whereby three world players (GIA, HRD and IGI) provide an objective and independent assessment of a diamond in the form of a certificate.

More info:

Author: San Meuleman

Blog