Diamonds have been around for thousands of years, and they're still going strong. But diamonds aren't just a precious stone; they can also be an investment. Whether you want to invest in the commodity itself or in companies that produce them, there are plenty of ways to profit from your diamond investments. Here are five ideas for making money off of these beautiful stones:
Investing in Diamond Jewelry
If you're thinking of investing in diamond jewelry, the most important thing to keep in mind is that it should be an investment and not a fashion statement. In other words, your goal should be to buy quality pieces that will hold their value over time.
Jewelry is a good investment because it's tangible—and if done correctly, can be quite profitable. You may even find that buying fine jewelry feels more like an investment than spending money on stocks and bonds does (because we all know how expensive those are).
Investing in Diamonds as a Commodity
Investments in diamonds are typically done through the purchase of a diamond futures contract. A futures contract allows investors to buy or sell diamonds at a predetermined price, date and quantity.
While there are many ways to invest in diamond as an asset class, we’re going to discuss two specific methods: investing through commodity exchanges and holding physical stones.
Investing in Diamond Stocks
You can also invest in diamond stocks. While this is a risky investment, there are several companies that have a history of profitability. The value of a diamond stock depends on the company's performance and it has been shown that some companies have performed better than others over time.
If you're interested in investing in diamonds as an investment, it's important to understand that the diamond industry is volatile compared to other industries. In fact, some experts say that you should only invest if you have at least 30 years before retirement!
Investing in Colored diamonds
Investing in colored diamonds is one of the best ways to diversify your portfolio. Rare and expensive, they’re not as popular as white diamonds but are a good investment nonetheless.
Colored diamonds are rare because they aren't used for mass-produced jewelry due to their rarity and high cost. There are many shades of color that can be found within a diamond, including yellow, pink, green, purple and browns—all colors that can be attributed to natural impurities within the stone when it's formed during its formation process. While some colors like blue are rarer than others (only 0.1% of all mined diamonds will ever be blue), certain colors such as red or orange tend not to show up at all since they're rarely present in nature
A diamond is considered “fancy” if it has a color that isn’t found in nature. These diamonds are highly sought after by collectors and investors because they can be worth more than 10 times more than the value of a white diamond.
Investing in Diamond Companies
Since diamonds are a popular and growing commodity, investing in diamond companies is a good way to make money from them.
There's the demand for diamonds. Diamonds have been used for thousands of years for engagement rings and other jewelry. This has created an ongoing demand for diamonds that will likely last for at least another thousand years—and possibly longer!
There's the supply of diamonds. Every year about 100 million carats (about 25 pounds) are mined from mines around the world; however, only 20 million carats (5 pounds) are actually sold each year by De Beers Group Limited—the world’s biggest diamond producer—in its polished state because most of it is used internally or turned into industrial products like drill bits or abrasives that aren’t sold on the open market but still generate revenue by being produced in-house rather than purchased externally
- Choose your diamond investments carefully and profit from your diamond investments.
- If you don’t choose your investments carefully, it’s easy to lose money on diamonds. If you choose wisely, however, diamond investments can be a profitable part of your portfolio. Here are five ways to make sure your diamond investment strategy is on track:
- Choose an ethical diamond merchant with a good reputation who will give you a fair deal. Diamonds aren't cheap—so the price should reflect quality and value rather than cut corners. Find out if they use conflict-free diamonds so you can be assured that your purchase isn't funding terrorism or civil war in Africa.
Make sure the dealer has a professional grading system in place for all of their gems that's consistent with industry standards (GIA-IGI). This will help ensure that you're getting what you paid for when buying diamonds online or from other sources as well as giving peace of mind about how much profit potential exists in any given stone.
We’ve outlined five different ways you can invest in diamonds, from jewelry to stocks, and even colored diamonds. While some of these investments may be easier than others, all are worth considering if you want to make money from diamonds. Just remember: when it comes down to it, buying diamonds is only the first step—investing in them afterward is where the real potential lies.
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