Investing in diamonds
(It’s the smartest thing you can do, honestly)
During the past years, the use of diamonds as an investment and financial hedging tool has grown rapidly.
The reason is obvious: Diamond prices are always increasing. In the last 10-15 years, there’s been a huge interest in investing in colored diamonds, making prices for pink and blue diamonds rise by 400 %.
Also, the increasing demand for pink diamonds is caused by the coming closing of the mine which supplies 90 % of the pink diamonds set in jewelry.
This means that there’s only a limited amount of pink diamonds on the market, making the prices sky-rocket.
Why invest in diamonds?
Diamonds don’t take up any space
Diamonds are durable. It’s the hardest substance on the planet – nothing will happen to it. All you have to do is make sure you don’t lose it
You can enjoy a diamond while you have it. It will last you forever, and as diamonds are billions of years, there are no ‘second hand’ diamonds. So, mount it and wear it
You’ll have it in your hand. Unlike stocks and other financial securities, you can hold it, look at it and wear it
Diamond prices are steadily increasing, even during financial crises
How do I invest in diamonds?
Today, it’s easy to buy a diamond – you can even do it online.
But before you do, here are a few basic guidelines to follow for the best result.
Learn the basics of diamond grading so you know what you’re buying.
Set a budget. Diamonds should be a part of your portfolio.
Diversify your diamonds. Don’t put all your money on one diamond, and don’t buy two or three diamonds of the same type. If you’ve invested in a pink diamond, choose another color for your second diamond. We don’t know for sure which type of diamond will be more valuable or easier to sell later on.
Buy rare, yet desired. You shouldn’t buy a diamond that everyone else has, and don’t invest in diamonds that few people would buy. Personally, I’d buy diamonds in D/E color with a VVS in clarity and in excellent cut. These are absolutely beautiful and easy to sell. And a personal tip: Buy a color that you love. It’s always easier to sell a diamond that you love yourself.
Know what you are getting. Buy only certified diamonds and trust only certificates from HRD or GIA. For colored diamonds, only a GIA certificate will do.
Always inspect the diamonds loose, not mounted. The setting can hide inclusions and enhance the look of the diamonds. White diamonds, for instance, look more white set in white gold.
Buy directly from diamond dealers to ensure a fair price. If you buy from a retailer, many brokers and mediators have gotten their share, making the price tag go up.
Don’t be shy. Ask lots of questions. A good diamond dealer will love to answer all your questions and help you on your search.
