Diamonds are among the best of all gemstones when considering the terms of investment. The prices of diamond have steadily increased since the depression as opposed to other commodities like copper, silver, gold, etc. It is very important to know the mechanics of buying investment diamonds because like any investments, diamonds also have their weaknesses.
Whether investing in diamonds is good or bad is out of the question. But we will point out some tips on how to yield the best results on your purchase of investment diamonds.
• It is improbable that you can make a direct purchase from the Diamond Trading Company (DTC); the best option is to buy from a diamond wholesaler since it is the closest to the source; as much as possible, stay away from retailers.
• D color, IF clarity and other high quality diamonds may make good investments when looking from the “dollar” perspective; however, they have low liquidity. Diamonds that fall within the H range for color, VS2 clarity and other low quality diamonds are generally easier to sell; to some extent, they mitigate the low liquidity of diamonds. However, you must note that diamonds are not very good for short term investments.
• Stones with carats that are greater than 1 usually make better investment diamonds. When referring to investment diamonds, the importance of the diamond carat is often overlooked. The reason for this is that over time, a full carat 1.0 shows greater price appreciation than a 0.98 carat.
• Be sure to buy diamonds that are graded by GIA, AGS, IGI and other laboratories that are well recognized. Should you intend to sell your stones as investment diamonds, you can negotiate for a high price because you have reports that guarantee their quality.
• Diamond cut is another essential factor in investment diamonds. The Princess cut diamond is increasingly getting popular therefore it is also getting more pricey; other types of cut that are going out of style are costing lower too. More diamond enthusiasts favor Round Brilliant cut as an investment diamond because of its stability.
The best investment stones are those which have very high value per unit weight. There is no problem with transport and shipping because of this. In 2009, Dutch Bank ABN Amro launched an online DODAQ (Dealers Organization for Diamond Automated Quotes) for polished diamonds; this is another good reason. This was a big help in solving the issue of the diamond’s lack of terminal market. Also, the DeBeers announced the scaling down of their production because of the new diamond mines coming online; this might increase the prices of diamonds in the future. Therefore, now is the best time to learn how to purchase investment diamonds and to invest in them as well.
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