On paper, diamonds make great investment sense since they have high intrinsic value, they are always in demand and they do last forever. Unlike gold, diamonds do not have a universal price per gram - no two stones are exactly the same and every diamond has to be valued on its individual merits making the valuation somewhat subjective. So how can you be sure of making a good return? Just like any other investment you need full awareness of the risks and potential pitfalls. When investing in anything, the mantra ‘Buy low, sell high’ will serve you well but when it comes to diamonds, ‘buying low’ is much harder than it looks. It is crucial to shop around and make sure that you’re buying at the most competitive price. Diamonds are a commodity and like any commodity, their value can go down as well as up. Diamonds take time to increase in value, meaning your money is going to be locked up for quite a while. When buying a diamond as an investment, you also need to understand which diamonds are worth investing in. Keep in mind that an independently certified diamond is easier to resell and that three-quarters of all diamonds sold are the round brilliant cut. This the most popular diamond shape and therefore provides a wider resale market. Always buy the best quality you can afford, choose a diamond with an excellent cut grade as well as above-average colour and clarity.

You might now be thinking that it’s not really worth investing in diamonds - and if you want to buy diamonds solely as an investment you are probably right. But if you want to acquire a nice piece of diamond jewellery and you want something that will increase in value over the long-term then go for it! Just remember to follow these three rules (1) shop around and buy at a competitive price (2) choose the more popular round brilliant diamond cut and (3) make sure you obtain a valuation from an independent certified lab.

One final piece of advice, in order to avoid the disappointment of the diamond not appreciating as much as you’d hoped, buy a diamond that you LOVE so that you can enjoy it while you have it.

#diamond #brilliantcut #diamondsareforever #diamondinvestment

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