What to consider before investing in diamonds

Are you also considering investing in diamonds? 

But are you afraid of investing in the wrong diamond? Then let me help you.

There are an incredible number of diamonds for sale, and almost as many companies and individuals who would like to sell you diamonds. 

But be careful. Because there are definitely some diamonds which are a good investment, and some which are a super bad investment. 

So what should you do? 

First, you need to master the 4 Cs

  • Carat
  • Cut
  • Clarity
  • Colour

You can read more about them here https://bylamm.com/diamonds-and-diamond-grading/

Next, you should always invest in diamonds which are most in-demand and which are difficult to find. It will always be high-quality diamonds. But it should not be in fantastic extra top quality, because many people doesn’t want to pay the premium for those kind of diamonds. 

Therefore, I advise my clients to buy diamonds in this quality:

  • Carat; 1, 1.5 or 2 carats
  • Cut; brilliant cut. 
  • Clarity; VVS
  • Colour; G or H

The diamond colours you should not invest in are the diamonds which are yellow in colour, but which do not have enough depth of yellow colour to be classified as “fancy yellow”. This means that you should not buy diamonds in the colour M, N, O, etc. As there are thousands of diamonds in those colours and they are not in particular demand which means that the prices do not increase.

In addition, you need to be careful with the clarity of the diamond. You can go a little further down in clarity, for example to SI1, but certainly not anymore, as you otherwise might be able to see the inclusions with the naked eye just by looking at the diamond, and there are not many who are interested in diamonds with visible inclusions. 

You also need to make sure that you invest in a diamond in a good cut. A diamond which is cut in what is classified as the fair or poor cut will not shine as much as other diamonds, and you will have a hard time selling them if you ever want to sell your diamond again.

In short:

You need to buy a diamond which is hard to get and which are in high demand.

And you should not invest in a diamond of poor quality as the diamond market is flooded with diamonds of poor quality.

You need around 10.000 Euro to invest in a good diamond. And I will of course love to help you find the perfect investment diamond for your budget.

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Born in Denmark, I work in Antwerp in Belgium – the centre of diamond trade in the word. From here, I find and select premium diamonds and gemstones to create custom-made jewelry for clients all over the globe. I love the idea of customized jewelry as I want to help you make exactly the piece of jewelry you desire. Read more about Diamond Dealer Services