Diamond as investment? Pay attention to these 5 important aspects

There are 5 important aspects to buying diamonds as investment. – BAUNAT DIAMONDS

  • What quality should I buy?
  • Which diamond colour do I want?
  • What is the size of my investment diamond?
  • Which cut quality should my investment diamond have?
  • Where does my diamond come from?

Diamonds are often purchased for emotional reasons, and therefore often set into jewellery. However, they are also definitely interesting as an investment. Buying diamonds as an investment is opting for a crisis-proof and stable investment. What should I pay attention to for my investment diamond? How can I find the perfect diamond? The experts at BAUNAT DIAMONDS are here to give you some rules of thumb for finding the right investment diamond.

What quality should I buy?

Diamonds of the best quality are best-suited for investments. That sounds logical, but it is in fact not always true. The higher the quality of a diamond, the more expensive it is. Naturally, the quality does play a big role here. That is why investment diamonds generally have a higher quality than the diamonds set into jewellery.

But the highest quality diamond is not per definition the best diamond to invest in. After all, in the end you want to make a profit on your diamond. That does not always follow for a gem with a very high value. For such gems, odds are that they become too expensive to be sold later for the price you had in mind. Be sure to select the optimal price-quality ratio.

Which diamond colour do I want?

Some coloured diamonds, the fancy coloured diamonds, have a higher market value, because they are rarer than white diamonds while demand for coloured diamonds is increasing. They often even have inclusions, but their colour still makes them more interesting than the completely white ones. This makes them suited for experienced investors looking for a large investment.

Sometimes, buying a non-white diamond like this one can be a better choice for an investment. – BAUNAT DIAMONDS

What is the size of my investment diamond?

Especially for diamonds bought as an investment, you should keep the carat weight in mind as an important aspect. The challenge is not only to buy a gem that is not too small to make a nice profit in the end, but that is not too big either. You might well end up in a higher price class and pay a lot more money for almost the same gem. After all, the price rises exponentially as the carat weight increases. According to our experts, diamonds between 1 and 5 carat are perfect for investments.

Which cut quality should my investment diamond have?

Nobody wants a poorly cut diamond. That is why you should make sure that the cut quality is high enough. For an investment diamond, the cut quality should be at least VG (Very Good). Ideally, the quality is even a bit higher.

The cut quality is the only human aspect that contributes to the return rate and thus the value of your diamond. Keeping this in mind, it is worth the effort to look for cut shapes that require a high degree of expertise to achieve, such as the heart shape.

Where do my diamonds come from?

There are many channels for buying diamonds. For an investment diamond, the location where the diamond is cut is an especially important aspect. The longer the journey of the diamond before your purchase, the higher the odds that a large share of your revenue disappears into the pockets of all the intermediaries.

Online purchases at BAUNAT DIAMONDS are very profitable, since our diamonds come straight from their source. In addition, all our diamonds have passed through a renowned certification agency, such as GIA or HRD. We advise you to only invest in diamonds with a certificate of authenticity; that is the only way to guarantee its quality.

Where can I find the right diamond for my investment? Who can help my pick the right diamond? Ask your diamond expert at BAUNAT DIAMONDS for advice on the perfect investment diamond or give us a call at +32 3 201 24 90.

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