Are Diamonds A Good Investment? Are Diamonds A Good Investment?

Are Diamonds A Good Investment?

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To date, diamonds still endure as a symbol of romance, love, and engagement. Their aesthetic beauty and value also make them meaningful, personal, and valuable possessions. Meanwhile, diamonds are gaining popularity, and regardless of the state of economic strain, their value tends to increase over time. If you are considering diamonds as an investment or wondering if diamonds are a suitable investment? Then read on to learn more on the best diamond investment.

Investing In Diamonds

Just like precious metals, diamonds are a worthy investment. However, when considering diamonds as an investment, it is crucial to check what sells best in the market and what will be the easiest to sell. There are various diamonds on the market, and that requires you to choose what kind holds its value exceptionally well. The market perception should guide you when diving into diamond investment. Additionally, check the diamond market rarity or what the market cares more about diamonds. For example, scarce diamonds will always fare well in prices and demand. Some of the rarest diamonds include colored diamonds, while white diamonds rank high in terms of quality. Naturally colored, including red and blue diamonds, are incredibly rare diamonds. However, there is little demand for pink, orange, yellow, and green diamonds, which should raise concerns about investing.

How To Determine A Diamond's Value?

Despite diamonds being valuable, just a few facts make some diamonds more expensive than others. Diamond valuation will highly depend on various factors; the 4 Cs: Carat, Clarity, Color, and Cut.

Carat

The total weight will strongly determine the diamond's value. A 'carat' is a unit of choice used in measuring diamonds. One carat is equivalent to 0.00705 ounces or 200 milligrams. Like any other good on the market, the heavier the good, the more valuable it is.

Color

Various colors present in the diamond lineup include blue, pink, green, and red. And as stated earlier, most of these colored diamonds are scarce. Therefore, their value is more. Meanwhile, the typical color for most diamonds is colorless or white. And their price will strongly depend on how clear they get.

Clarity

The clarity is what defines diamond purity. The number of inclusions and blemishes are the baseline of diamond's clarity. So, the lesser the internal flaws ( inclusions) a diamond has, the rarer it is, affecting its worth.

Cut

With all other Cs factors occurring naturally, the cut can increase or decrease the brilliance and value under the hands of a craftsman designing the diamond. In addition, the cut will help control the amount of light reflected through the diamond. It unleashes the hidden beauty within a diamond by allowing the right amount of light to interact at each angle.

Why Are Diamonds A Good Investment?

There are so many opportunities in the versatile market. Precious stones and specific gems like diamonds are considered ideal investments to dream about emulating. Some of the reasons why diamonds, especially colored diamonds, are considered as a wise investment include:

Long Term Growth

Over the last two decades, the price appreciation of natural colored diamonds is definitive proof of how diamonds have dominated the market. Likewise, the auction for jewels shows how strong diamonds are today, with a repeatedly broken record for having the highest price per carat.

Internationally Recognized

Diamonds are well-established commodities that have a reputable market history. Today, their prices have steadily increased and have no speculation of dropping in the future.

Value Retention

The market value of fancy colored diamonds is determined by prices set in auction houses. Their rarity is a primary reason why prices remain high. Even better, the supply is diminishing as some of the producers are closing down.

Durability

Diamonds are incredibly durable, thanks to their hardness properties that occur during formation. As a result, they are capable of withstanding any environmental condition.

Bottom Line

Investing in diamonds is an ideal way of diversifying your investment portfolio. Their ability to store and appreciate value is suitable for protecting yourself from fluctuating investments like cryptos. However, getting a genuine supply of fine quality diamonds is not easy. That's why you should trust an expert. Mervis Diamond Importers is here to help you get quality diamonds and jewelry. Although all fine diamonds are usually accompanied by a grading report form a recognised authority, the report doesn't always tell the full story. It's really necessary to examine the diamond up close to get an appreciation. See more than one and compare them to understand the differences. And most importantly, even though diamonds are an investment, when you're purchasing for an engagement or other sentimental purpose like a wedding anniversary or celebration of a newborn, the joy of owning and wearing a diamond - nature's perfection - set in a gorgeous ring may outweigh the investment consideration. In case, go for beauty above all else, and affordability. Mervis Diamond Importers is here to assist you. Contact us today or browse through our product page to secure one of the world's finest diamonds.
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