It doesn’t take a genius with a magnifying glass to understand the value of a diamond. Whether it’s the sparkle that sparks your interest or the rarity of the rock; diamonds have always enticed the eyes of many. But learning the ins and outs of investment, however, is a tantalising topic; particularly when diamonds are thrown in the discussion.
But why do people stall at the chance of investing in diamonds when they are already enticed by the aesthetics of the end product?
Well, with investment, there are implications, and this is what seems to be throwing many people off guard; particularly when the value of the market is questioned. Even just glancing at Google’s search-related queries, it’s evident that people have become more cautious of the diamond market, despite the attractiveness of the rock itself.
So, we thought we’d dig deeper to uncover the hidden truths about investing in diamond.
Firstly, do diamonds really live forever?
In our lifetime. Yes. In your family’s lifetime? Most definitely so!
The physicality of a diamond will live on for billions of years, however like any product of Earth, it will eventually decompose, but the reality of it is that diamonds will live for as long as Earth remains. In fact, a diamond’s life expectancy is currently double the Earth’s life expectancy; so, there’s no question that diamonds will disappear off the market.
Will diamonds deplete?
The diamond market has always been a market worth investing in, whether you’re looking to buy diamonds online or purchase privately; though it’s impossible to predict the future’s forecast. However, the history of diamonds can help determine the market’s worth, as diamonds have always been illuminated by people of high status; therefore, it’s unlikely that a diamond will ever decrease in value.
But, how do you determine a good quality diamond before investing?
Before any purchase is made, buyers can’t help but think about the value of a product. Whether it’s a pair of new shoes or a new car, people want to know how long it will last for; so, how do you determine the true value of a diamond?
According to the diamond doyens, investors must evaluate the diamond’s value via the five c’s.
Carat. The weight and size of the diamond. Although a heavy diamond will carry a hefty value, as much as a contributing factor it is, it doesn’t determine the overall the value of a diamond. Of course, clarity, colour and cut will also be taken into consideration when evaluating the diamond’s overall worth.
Clarity. Typified in the title, the clearer the diamond, the more it’s worth. In short, this means that the fewer birthmarks or inclusions it has, the higher the value.
Colour. A diamond’s value is determined on a D-Z grading system which identifies colours beyond the human eye. Although it’s very rare to find a pure white diamond, a ‘white’ diamond isn’t everything. As pretty and pristine as it may look, in reality, coloured diamonds are worth investing in; especially ones that are heavily saturated. The ones that are worth investing in are pinks, blues or greens. However, red is currently the rarest.
Cut. The only thing not determined by nature. Cut, is one thing you can take more control over, as it determines the diamond’s overall appearance and physical worth. Depending on how the diamond is cut, will help influence its value. In short, the more light the diamond reflects and the more detail that is revealed, the higher the value.
Certificate. Last but not least, the certificate is the legal binding of the diamond’ s overall worth. The certificate states the preceding specifications of the diamond, as well as the laboratory that provided the running provisions. Overall, it’s the ticket to your investment.
Although this guide isn’t an in-depth analysis of the diamond market, it does help to determine the benefits of investing in diamonds. Whether you’re looking to invest in a diamond or even a share in the diamond mining industry, what this article does do is shed a rather promising on an alternative and worthy form of investment.
I mean, if people are willing to throw several thousand dollars at a Tiffany engagement ring – even then, buyers are buying into the brand as opposed to the actual diamond! Then what’s not to say you’re not going to profit from a high-quality pre-cut diamond? Now you know its worth, why not invest!?