Diamonds are a girl’s best friend, but these precious stones are also great for investment. Diamonds have always been in demand, and despite many things that people say and presume, the demand continues to surge. If you are considering investment in diamonds, there are a few basic things you need to know. Here’s our take!
Know your diamond
Diamonds are graded based on 4 Cs – cut, clarity, color and carat. The color of the diamond refers to the shade. A diamond that’s colorless and of top quality is graded D and will be more expensive than one that’s rated R or more. Being a natural stone, diamonds do have some inclusions, which are defined in terms of clarity. Lesser the number of inclusions, higher is the price. The carat refers to the weight of the diamond. Bigger diamonds are obviously more expensive. The cut is also important and refers to the stone’s ability to reflect light. Do your homework when it comes to these 4Cs before buying both diamond jewelry and loose diamonds.
Know your merchant
Thanks to online stores, you don’t have to visit a physical store to buy diamonds, but that also means one has to research about the vendor. For example, if you check about diamonds.co.nz on their website, you will find all the relevant details. Always deal with a known and reliable merchant for your diamonds, so that you are assured that the investment is genuine. In case of precious metal, there is an index, and therefore, you cannot go wrong with the pricing. Diamonds can have different valuation standards, and therefore, dealing with a known merchant is necessary.
Know your investment goals
Diamonds can add value to your portfolio, but at the same time, you have to understand that the price and value of diamonds is not always absolute as gold. Diamonds must be handled, purchased and sold with care, and you need to buy certified diamonds at all times. In fact, Certification is often defined as the 5th C, and it is important, especially if you are investing in these stones with the intention of selling later for a profit.
Diamonds are ideal for investment and personal occasions, and if you have been thinking of a gift for your beloved, this is the best choice by all means. All it takes is some initial homework, and you must find the a dealer worth relying on.