Buying Diamonds As An Investment

When it comes to terms of investment for gemstones, diamonds are perhaps one of the best. The prices of diamond have steadily increased since the depression as opposed to other commodities like copper, silver, gold, etc. All investments have pros and cons; that is why it is very essential to learn the ins and outs of buying investment diamonds.

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This is not a debate of the reasons as to whether it is good or bad to invest in diamonds. The aim of this post is to know how to invest on diamonds that will yield the best results.

• If at all possible, do not buy from retailers; since it is improbable that you can have a direct purchase from the DTC (Direct Trading Company), the closest sources are the diamond wholesalers.

• 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. It is important to note that for short term investments, diamonds are not very good.

• Diamonds that make better investments are those with carat greater than 1. When referring to investment diamonds, the importance of the 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.

• Buy only diamonds that have grading reports from well recognized labs like GIA, IGI and AGS. This will guarantee the quality of your diamonds; therefore if you must sell them as investment diamonds later on, you can negotiate a good price.

• Another thing you should look into when investing in the stone is the type of diamond cut. 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. The Round Brilliant cut is most favored as an investment diamond because it has remained stable.

If diamonds have very high value per unit weight, they are the best investment diamonds. Because of this, they are most efficient when it comes to transport and storage. One good reason was the launching in 2009 of DODAQ (Dealers Organization for Diamond Automated Quotes) for polished diamonds by Dutch Bank ABN Amro. One major issue of the diamond industry is the lack of terminal market; this was solved by DODAQ. The announcement of the DeBeers that they are scaling down on production due to the increase in more new diamond mines coming online may cause a potential increase in the diamond prices. Therefore, now is the best time to learn how to purchase investment diamonds and to invest in them as well. I strongly recommend you check out Online Diamond Store Reviews For our full in depth online diamond store reviews or Visit Engagement Ring Financing Options For our full in-depth look at diamond ring financing.