Smart in Every Way

How can I invest in diamonds?

  • What is an investment diamond?
  • How can I be sure my investment diamond is suitable?
  • What is the importance of a certificate?  

According to experts, investing in diamonds is a lucrative and stable way to add to your savings. However, when making such a big decision, you need to make necessary precautions. BAUNAT DIAMONDS gives you an overview.

What is an investment diamond?

There is a difference between diamonds suitable for jewelry and investment diamonds. It is recommended to visit a specialized company, such as BAUNAT DIAMONDS, instead of a local jeweler. A specialized company is much more qualified to guide you in your investment. When investing in diamonds, take the 4C´s  into consideration. First and foremost, the value of your diamond is determined by its weight. The higher the carat weight, the higher the value of the diamond.

But the other factors are important as well. A round diamond, for example, is more in demand. You should also opt for a diamond with as little inclusions as possible. When buying an investment diamond, it is recommended to invest in a diamond with the rarest features, to ensure an easy resale in the future.

How can I be sure my investment diamond is suitable?

We focus on 3 types of investments, which will be explained below. It is always recommended, however, to obtain a certificate from one of the three most prestigious laboratories: GIA (Gemological Institute of America), HRD (Hoge Raad voor Diamant) or IGI (International Gemological Institute).
 

1. What are the most important characteristics for an international investment? 

​For a medium term or long term international investment, the recommended colours are D or E, with a clarity grade of FL, IF or VVS1 and a round shape. The cut grade and the polish should either be EX or VG.The recommended carat weight is between 2 and 10 carat.

2. What are the most important characteristics for a patrimonial investment?

For a patrimonial investment, the colours are D, E and F are prefered, in combination with a FL, IF, VVS1 and VVS2 clarity grade. Again the round shape is recommended   and cut grade should either be EX or VG. The carat weight is determined by the available budget, but ideally lies between 1 and 6 carat.

3. What are the most important characteristics for a family investment?

For a family investment, the colour can be D, E or F, with a clarity grade of FL, IF, VVS1, VVS2 or VS1. The shape can be round, pear or princess with an EX or VG cut. The carat weight should be at least 0.5 carat.


What is the importance of a certificate?

You can only invest in earnest when you have a diamond certificate from one of the most renowned gemological laboratories. It identifies the stone and lists all its vital data and characteristics, as well as a description of its qualities and flaws. The 4C´s of the diamond, its fluorescence, cut, symmetry and polish as well as its exact dimensions will be mentioned on the certificate. To guarantee its traceability, the certificate number is laser inscribed on the girdle of the diamond and checked by using a magnifying loupe x 15

Experts note and report the smallest of details. Laboratories may also add comments on the specificity of the diamond, something that impacts its value significantly. This is why it is important to have your investment diamond certified.

Which diamond should I choose? How can I invest in more than one diamond?  Consult our team of experts at BAUNAT DIAMONDS and diversify your investment portfolio.

 

Author: Jeremie Politi
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