Invest in Diamonds Beyond Jewelry: Alternative Opportunity

How to Invest in Diamonds?

Investing in gold or silver jewelry has been a tradition for centuries, and we have observed growth and prosperity in this savings approach as well, following the example of our elders. People have adjusted to new techniques for subsistence and means of income as the times have changed. Therefore, why not venture to invest in diamonds?

The Size of the Diamond

Diamonds are most advantageous when they are of a larger dimension and do not occupy a significant amount of space. The price of a solitaire ring is higher than that of a ring with 25 tiny diamonds. Diamond prices typically increase in proportion to their sizes, which is why larger stones are significantly simpler to resell than smaller ones. Nevertheless, it mightn’t be affordable to all. Consequently, it is imperative to be aware of the type of diamond in which you are investing.

Invest in Diamonds That are Certified 

Diamonds maintain their intrinsic value over time. The value of qualitative, substantial, and pure stones may fluctuate over time, but they remain true to their fundamental essence and do not deteriorate. A third-party certified evaluation of diamonds that is credible will always guarantee the accuracy of the diamond parameters. 

Evaluate the Price First

When considering the purchase of large gemstones, it is imperative to have a comprehensive understanding of the four C’s: Cut, Clarity, Carat, and Color. The higher the clarity grade of a diamond, the fewer imperfections it possesses. We do not purchase diamonds at their full value. Tiamonds adheres to a strict procedure that involves the meticulous evaluation of each diamond to the best of our ability, the preservation of consistent inventories of non-certified diamonds, and the pricing of our diamonds in accordance with the market. 

Durability and Storage

Smaller versions provide ample storage capacity. By displaying your jewels in a manner that is both tasteful and long-lasting, you can derive positive benefits. You can easily observe, hold, and wear diamond jewelry as an investment. Due to this, numerous individuals believe that it is a more secure investment than securities and other digital assets. Diamonds are the finest stones on Earth and are not perishable. They are also resistant to wear and tear. You are free to wear your “Big” investment for as many years as you desire. Additionally, it is possible to insure costly gemstones to reduce concerns regarding their potential loss.

How to Invest in Diamonds? 

Investing in diamonds is equivalent to investing in tangible commodities. This implies that they are readily available for purchase, including online. We recommend incorporating diamond investments into your overall portfolio, but only as a small portion. The following suggestions are fundamental guidelines for investing in gemstones.

Acquire the fundamentals.  Learn the language of diamonds by starting at the outset. Learn about diamond evaluation by beginning with the four C’s.

Allocate a budget.  A fundamental principle is to ascertain the proportion of the investment portfolio that should consist of physical commodities at the outset.

Diversify the diamond collection.  Do not purchase a single diamond in excess of your total budget.  Diversify your portfolio by purchasing a variety of lesser-known diamonds. This ensures that it will be simpler to transfer a portion of your investment in the future.

Contrast prices.  Unlike securities, diamonds do not have a fixed price. You may be able to obtain a more favorable price depending on the location from which you purchase them. Fortunately, the ease of purchasing diamonds online has made it simpler to locate a high-quality diamond at an affordable price.

Purchase diamonds that are scarce and in high demand.   Ensure that the diamonds you invest in are not only highly desirable on the market, but also sufficiently uncommon to warrant a premium price.

Be informed about the products you purchase.  Possibly the most critical tenet of all. Purchase diamonds that are laser engraved and certified from a reputable laboratory.

Avoid paying an excessive amount for your investment. Purchasing the diamond at retail increases its value by additional margins. We mean to purchase as many levels up the supply chain as possible when we say “don’t pay too much. It is recommended to purchase directly from diamond manufacturers.

Checklist to Invest in Diamonds

1. Choose Between Weight and Carat

The most prudent investment options are diamonds which weigh between 0.50 carat and 1 carat. This is partially due to their demonstrated ability to retain their value, but it is also a result of their relatively lower cost compared to larger carat diamonds, which enables you to purchase more and subsequently sell off portions of your investment as needed.

2. Choose Clarity

We suggest selecting a gemstone with a clarity classification of IF (Loupe Clean) or FL if your budget permits. These diamonds are the most uncommon in the world and are nearly certain to generate a substantial long-term investment return.

A viable alternative is to select a diamond with a clarity classification of VVS 1. It is nearly impossible for an untrained observer to discern any distinction among the three rating categories.

3. Choose a Color

When investing, it is advisable to select a colorless diamond, as they are rarely prone to losing their allure. The diamonds are ranked in alphabetical order, with D denoting the purest blue white and Z denoting a diamond with a light hue.

4. Choose the Appropriate Certificate

An authorized independent gemological laboratory should recognize loose diamonds prior to purchase. An authorized independent gemological laboratory provides the most frequently requested certifications.

GIA – Gemological Institute of America
IGI – International Gemological Institute
HRD – Hoge Raad voor Diamant

5. The Final Stage is to Select the Shape

Round diamonds are the most common shape traded in the market, which makes it simpler  to sell your diamond(s) in the future.

Final Thoughts

In summary, diamond investments should be a component of your investment portfolio, rather than a reliance on a single income source for the duration of one’s life. Accepting the risk comes at a cost, but sourcing diamonds from an accredited supplier ensures transparency, authenticity, and traceability. This risk is eliminated by miners and manufacturers who have ethical practices and authorization from a third-party Auditor, which serves as evidence that your investment is insured.

Consequently, grasp the fundamentals, establish a budget, and make an informed purchase.

Sign up for the newsletter

Stay informed and connected with our latest updates, exclusive offers, and valuable insights by signing up for our newsletter