Smart in Every Way

Diamonds as an investment? Pay attention to these 5 important factors

  • What is the right quality?
  • Which colour diamond do I want?
  • How much does my investment diamond weigh?
  • What is the right proportion?
  • Where does my diamond come from?

Diamonds often have an emotional connotation, but can also be beneficial to your portfolio. A diamond as an investment means opting for a crisis-proof and stable investment. What should you pay attention to with an investment diamond? How can I find the ideal diamond?

What is the right quality?

You may well think that the best quality diamonds are also the most interesting ones to invest in. The quality does indeed play a major role in the diamond’s valuation. So the better the quality, the more expensive the diamond. But a top quality diamond is not necessarily the best investment diamond by definition. After all, you need to be able to easily liquidate your investment when the time is right. This is not evident with a very high value stone. So make sure you specifically opt for the optimal price-quality ratio.

Would you like to make a larger and rarer investment? Then you would be best off choosing a larger and good quality diamond than a small diamond of the highest quality.

Which colour diamond do I want?

As an investor it is not a good idea to pay the extra price for an extremely colourless diamond. So do not unnecessarily pay more for the most colourless diamond. Providing your gemstone looks visually colourless, that is more than sufficient. Some coloured diamonds, the fancy coloured diamonds, will have a higher market value because they are rarer than the white diamond and as a result of the increased demand for coloured diamonds.

Their extraordinary rarity makes them a great deal more expensive than colourless diamonds, which means they are more suitable for experienced investors who are looking for a major investment.

How much does my investment diamond weigh?

When purchasing diamonds as an investment, the weight, expressed in carat, is a very important factor. Make sure you do not buy too large a stone, as this will put you in a higher price category and you will unnecessarily be paying more for almost the same diamond. Investors are best off choosing 1 to 5 carat diamonds. Diamonds of a higher caratage are not recommended from a resale point of view.

What is the right proportion?

A diamond with incorrect proportions will look dull and may even have a ‘fish eye’ – a black spot in the centre – which will result in a non-optimal shine. When buying diamonds as an investment, make sure the proportions are minimally VG (Very Good). In addition, the cut is the only human aspect which contributes a great deal to the value of your diamond. It is therefore definitely worth the effort to look for cuts which demonstrate high levels of craftsmanship.

Where does my diamond come from?

You can buy diamonds via a variety of routes and from various different types of suppliers. The place where a diamond has been cut is an important factor with investment diamonds. The further away from the source you buy, the bigger the chance of your future yield disappearing into the pockets of intermediaries. Making an online purchase from BAUNAT is therefore very cost effective, considering we get each diamond straight from the source. Also make sure you only buy diamonds with a certificate of authenticity, issued by a reliable diamond institution such as GIA. This means you can rely on the quality.

Where can I find the right investment diamond? Who can help me look for the right diamond? Ask BAUNAT DIAMONDS’ diamond experts for advice for the perfect investment diamond.

Author: San Meuleman
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

START TO INVEST See our selection of loose diamonds

Related

Most popular