Diamonds as an investment

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Who Should Consider Diamonds as an Investment

The times when diamond ownership was just a way to beautify yourself are gone. Now, there is a far smarter to buy a diamond – turn this into an investment!

These days, many people have started considering buying diamonds for investment. This alternative way to profit in the diamond industry grew popular with several financial crises that shook the global economy. In the new harsh reality, diamonds became a more stable asset to buy and sell than old-fashioned real estate and bank accounts. So, investing in diamonds seems attractive and reasonable to many people now.

Moreover, diamonds as an investment have been demonstrating stable growth in value over the past few years – almost 5% annually! In contrast to volatile stocks, this feature of diamonds is rewarding enough for serious consideration.

If you’re interested in investing in natural diamonds, a good option is to refer to a reliable retailer or find a good company online specialized in these operations. But that’s not enough. Like in stock trading, you need to learn all the rules of the industry and compare numerous options to buy a diamond safely and in the right way. Also, diamonds won’t promise you quick returns – their value increases with time only. Like a good wine, these precious stones reveal their full potential after several years. Do appreciate this risk before filling your portfolio.

Do you want to know about the basics of trading diamonds like stocks? Here we are to unravel all the principles of this investing game and protect your precious stakes.

How to Invest in Diamonds?

If you want to buy diamonds and enjoy their company, the main idea behind your deal is to order a stone that is as valuable as you think. To have the relevant knowledge about its worth, you should learn how to check the key parameters of a stone.

Known as the 4C’s, these main diamond characteristics are carat weight, clarity, cut, and color. Besides, the diamond shape plays a significant role. So, let’s take a closer look at them and compare their impact on your diamond trading.

    1. Carat number indicates the weight of a natural diamond. For investment purposes, the best option to buy is 0.5-1 ct. These diamonds are always demanded, valuable, transferable, and available online. If you consider buying small diamonds, this makes it possible for you to have several stones, which results in easier trading of your portfolio. Big natural diamonds are also a good alternative with completely different benefits. They carry more value, come in rare colors, and are not dependent on demand fluctuations. That’s why a single diamond of an impressive carat weight is a perfect choice if you want to pass your estate to somebody. In short, when it comes to short-term stock trading, it’s better to play with diamonds of small carat weight. But in a long-term perspective, big diamonds always win.
    2. Clarity determines the presence of blemishes and imperfections in your diamond. And when it comes to making an investment, you need nothing but perfect for this parameter. So, aim at buying flawless (FL) diamond to make the best deal that will never lose its value.
    3. Cut is the parameter that defines the reflection, brilliance, and sparkle of your natural diamond. If you’re ready to invest in precious gems, the best cut for your portfolio is either an excellent or an ideal one – no matter if you want to buy or sell it. Just compare the good and fair cut – and you’ll see the reason by yourself. In a similar manner, the diamond’s shape affects your investment. Pick a round shape of a colorless diamond – it’s always demanded on the diamond market.
    4. Color of a diamond may fall in either ‘colorless’ or ‘colored’ group. For investment purposes, pick a colorless gem of D, E, or F grade. Then, you’ll get the best of your decision. However, a colored diamond can also be a rare and highly valuable pick. If you intend to buy a big diamond, check pink and green color options – throughout the years, these colors perform the best on auctions.

How to make sure you’ve chosen the best natural diamonds as an investment?

Also, there are several important aspects to take into account while stocking both colored and colorless diamonds:

  • A certificate,
  • Value for money,
  • Profile diversification,
  • Making an informed decision.

 

Here are the details on how to avoid risks with these tools:

  1. Among all, check the certificate of your natural diamond. Don’t risk your money – ask the company of your choice to send you an online copy of this important paper. Even if a seller appears trustworthy, only the presence of a certificate makes your purchase truly safe and worthy. Specifically, the gemstone should have GIA or AGS certification to fit your portfolio. Diamond Registry is an online diamond education platform that works with GIA-certified gems only. Throughout the years, our company trusts this grading system as the one that proved its reliability and reputation. In addition, GIA was the first institute that introduced the very idea of the 4C’s, setting this important standard in the diamond industry. We recommend their reports as the best way to check your diamond online.
  2. Secondly, your budget is the factor that matters. Diamonds are different, and this feature extends your opportunities of getting the stone that fits your initial budget accurately. There is a high risk of overpaying on your diamond investment while stocking it, so take care! Avoid retailers and brands with high popularity. It’s always better to contact a diamond manufacturing company directly and online to get the best deal possible.
  3. Besides, a good trick in stocking is the diversification of your diamond portfolio. This means buying a couple of jewels of different types instead of one – in case your sum allows you this split, of course. If you’re up to this option, consider playing with diamond colors but not sacrificing clarity. You can win by choosing a rare color – but lose this advantage if its clarity quality is too low.
  4. Finally, you should accumulate all your knowledge about diamonds before visiting your seller. A specific choice in terms of stocks should always have a valid reason behind it. In other words, make an informed decision and buy the best diamond for your budget.

What is an investment grade diamond?

All the recommendations we’ve listed above can be summed in one term – “investment grade diamonds.” These jewels have the top parameters that make them highly attractive to invest in. They have a GIA certificate and an appropriate color to fit not only your portfolio but also the general engagement ring demand. Due to this, they may have a higher price – but you pay extra not to a seller but for the long-term value of your diamond choice.

Is Diamonds a Good Investment?

Many people wonder how buying diamonds for investment may work well. And here, the answer is short: invest in loose diamonds.

The basic advantage of loose diamonds is that all its imperfections and certification of the 4’Cs are evident. So, your chances to invest and profit from stocking it are as high as possible.

Why invest in loose diamonds?

We can distinguish 5 main reasons why investing in colored diamonds is what you need:

  1. They are moveable. These small stones of soft colors are the best option if you need to transfer all your assets.
  2. They are firm. Diamonds are among the hardest substances in the world. So, you’re safe: they’re unbreakable.
  3. They are pleasant. In other words, you can enjoy wearing your investment. Don’t be shy – diamonds are beautiful and truly worth it!
  4. They are reliable. While paper money and property lose their value in economic crises, diamonds are valuable forever. Their worth is protected by the stability of efforts dedicated to mining, production, delivery, and insurance.
  5. They are physical. You can be calm when it comes to cyberattacks – and take insurance as the only measure needed to secure your stocks. Diamonds are forever. In terms of trading, it is so since the 4thcentury.

How to invest in loose diamonds in a smart way?

To make the best of investing in colored diamonds, be aware of two extremes:

  • trying to sell something everybody invests in and
  • selling something that is so rare nobody wants to buy it.

 

On the one hand, you can buy something everybody recommends to invest in. Basically, this means taking top parameters on the diamond market: a gemstone of a round shape, 1-carat weight, VS clarity and D color in a colorless diamond group. However, when you try to sell it, you’ll see how difficult it is to compete with numerous rivals. You will need all your communication skills and negotiation talents to succeed.

On another hand, a special diamond you believe should bring you lots of money in the future may not answer your expectations. When the time comes, this rare pick may be hard to sell. The same applies to the diamond you like without argumentative background. Before purchasing any precious stone, make sure it fits the market expectations, so you will sell it better.

To invest in diamonds in the right way, consider consulting an expert! Precious gemstones are not stocks, so the right time and place matter. To facilitate your search and avoid costly retailers, Diamond Registry offers the best diamonds at wholesale prices at any time you refer to us! Just feel our free submission form, and our professional assistants will contact you immediately and help you compare prices. We keep track on events in the diamond market and guarantee you will find the best diamond at wholesale price!

Are mounted diamonds a good choice to invest in?

Even though loose diamonds are the best option for buying a diamond as an investment, mounted gems have clear advantages too. And all of them reveal themselves right at the moment you start owning a diamond.

  1. When it’s mounted, you can enjoy wearing a diamond.
  2. A good setting can mask all the imperfections and color flaws of your loose diamond.
  3. Mounted diamonds are the most popular auction picks.

Our company recommends mounting your loose diamonds after purchase. As a seller, you can enjoy all the benefits. Refer to Diamond Registry, and we will help you find the top setting for you to get the best from your investment!

Which is better investment gold or diamond?

Of course, diamond is not the only valuable material worth your attention. Gold is a good alternative to it. And the question arises: which investment option is better?

The obvious advantage of the gold alternative is that it has universal value. It behaves like stocks because it has a set price per unit of weight. Also, this alternative is beneficial due to its high liquidity and a long-term reputation of being the standard for national wealth.

On another hand, the choice of a diamond allows you to adjust your investment portfolio, thanks to its 4 key parameters (or the 4C’s). It’s not dependent on demand as much as on all its internal parameters and the presence of GIA certification. However, to use this trait for your advantage, you need expert help and referring to price guides published online.

Alternatively, you submit a Free Quote form on our website! Our diamond experts will be glad to help you make your investment in natural diamonds wisely.

How to be psychologically ready to invest in diamonds?

There are 3 things to be prepared to for turning your diamond investment into the comfortable practice:

  1. You need to know the special places that publish diamond prices. Unlike gold or silver, diamond is an asset that doesn’t have a price index. However, the cost is not hidden from the public completely – finding it simply requires extra research.
  2. Selling diamond is harder than buying it – although real. If you decide to do this by yourself, you may face difficulties while negotiating with retailers, applying the gem through Craig’s list, and entering auctions.
  3. Diamonds work better as a long-term investment. Keep calm and don’t expect you will get the best deal next year!

Why is Diamond Registry the best company to buy natural diamonds for investment?

As you can see, you need to make sure that your investment in diamonds is safe and that you buy quality diamonds at their actual price. The Diamond Registry is a diamond-trading source that has a large collection of certified loose diamonds and is frequented by jewelers and diamond wholesale dealers. Our purchasing service will guide you through the process of finding the diamond that is right for you at competitive wholesale prices unmatched in the industry. Have a look at the Diamond Price List to see an overview of the up-to-date market prices of certified loose diamonds. If you wish to know more about our expert purchasing service, get in touch with our team and ask for a free quote.