Diamond Investment

by on January 17, 2011

Investing in Diamonds

Diamonds have been known as precious for jewels since ancient times. Attractiveness of diamonds has risen since the 19th century because of effective advertising in spite of a greatly increased supply. Nowadays there are a few funds that are investing in diamonds. These funds obtain unique diamonds each stone is tested by a few professionals and converted until the fund decides to purchase it. Then a promoting team goes into action and through an extensive work the fund yield is gained. Refined and rough diamonds deficient some of the needed characteristics of investment vehicles, including fluidity, and similarity. Grading and warranty by renowned laboratories goes some way to redressing this. The weight and cutting proportions of the diamonds are important factors which can be precisely measured. Colour and lucidity grades are factors which need to be determined by gemmologists.

Diamonds are the most focussed stock of value that occurs. They are perceptible, transportable and runny investments that investors make privately. Investors can use diamonds without declining their value and they pay no possessions tax on their investment. The growing superiority and magnitude, and decreasing price, of man-made diamonds is presented as a danger to the value of polished or refined diamond pieces as a long-term investment, but it has never had a great deal of impact on real investment-grade diamond prices. The probability of low price extremely–good quality diamonds becoming available in bulk or volumes at for a while in the future has never been a burden for long-term investors in diamonds.

There is plentiful diamond categorizing test centres, with each contributing financiers, clients and traders similar diamond-grading and confirmation services. The standards are high, and when they ever slip, instant consequences are felt throughout the diamond industry.

There are also technique and selling elements to take into concern. De Beers pay out marketing efforts to inspire sales of diamond dimensions and qualities which are being produced in comparatively large amounts.

Diamonds are business to value added tax and sales tax in most advanced countries. Consumers paying high prices for jewellery presume a degree of exclusiveness or differentness when buying jewellery. This counts against real discount jewellery operators.

Most diamonds are sold through retail shops at very high profit boundaries. This is partly because retail competition currently helps prime site operatives paying high rents. Another reason for high mark-ups is the slow stock turn of jewellery, the high rate of interest, and security costs of carrying large stocks.

Before investing in diamonds one must know a lot about jewels in order to be an effective diamond stockholder. Start by learning the basic key elements cut, shade, clearness and carat. Each of these factors affects the value of a diamond.

Plan the diamond investments. One should start by planning how much money he can invest. Then decide what quality diamonds he can afford.

Determine whether you want to buy unattached diamonds or diamond jewellery

Before investing in diamonds communicate with jewellers and diamond merchants. Get statistics about the diamonds that are accessible. Buy shares in diamond mining firms for another tactic to invest in diamonds. For sure, diamonds are forever, and investing in diamonds can really become a financial security and support for many.

Diamond Price Chart of Last 50 Yrs.

{ 5 comments… read them below or add one }

dan April 14, 2011 at 1:12 am

There was a large decrease in diamonds prices in the 80’s. When a private person want to invest in diamonds he needs to start small and understand the market especially today when the internet is such a huge information source.
If investing in diamonds i would recommend to research the term: “Rarity” Some diamonds are rarer than others: High colors (D-E), Fancy Colors (pink, blue…), Large sizes. Rarer the diamond better investment it will be.


Megha May 13, 2013 at 10:37 pm

Quite an informative article!
Just like any other investment, diamond investment also requires good amount of research which many people don’t give much importance to. Also, many people treat buying diamond jewelry as another form of diamond investment, forgetting that: (1)there are making charges involved that gets deducted at the time of selling (2) diamond setting of that particular piece of jewelry may get obsolete at the time of sale and may not attract many buyers.
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Engagement rings November 25, 2013 at 7:09 am

I think its worth investing in diamond these days because as there’s a trend going on of diamond jewelry so people are attracted more towards diamond, so you never know when the diamonds will touch the sky.


Gold Refiners January 17, 2014 at 2:45 pm

I think I would rather invest in gold than diamond because of the huge decrease of prices of diamonds. Investment in gold is not a bad idea at all.


Don May 30, 2014 at 5:07 pm

We just purchased a diamond ring. We bought it on line and decided in a 1 karat diamond VS2. We believe that diamonds of this quality and size have the best possibility of increasing in value compared to the average ring and diamond purchased by joe blow.
Diamonds on average have increased in value 15% over the last 50 years, this should continue.
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