Although many investors have recorded significant losses in investing in stocks, bonds and even real estate over the years, diamonds don’t get the attention they deserve as a form of investment.
The value of diamonds is increasing and you may find that your diamond will be worth a lot more in a few years.
Diamonds – an investment that yields tens of percent
From 2009 to the present day, high-quality diamonds have yielded tens of percent with their value increasing due to their rarity. The ones that went up in value the most were the naturally colored, high quality, and rare diamonds.
It is interesting to note that according to a report produced by the International Bien & Company Consulting Company, there has been an average increase of more than 5% per year in the value of quality diamonds since 2009. For comparison, when investing in real estate, the average return is between 3% to 4%. This is before we deduct from the yield of the interest rate on the mortgage loan if any. Also remember that investing in real estate is about freezing investment money for many years.
Diamonds allow investments of varying amounts Depending on the diamond you buy. It seems that the value of the more unique stones increased over the years. The increase in value is caused by a significant depletion of diamonds for mining and a slowdown in the rate of mining of one of the most beautiful stones that nature has to offer. It is predicted in terms of investing in diamonds, that due to the reducing ability to mine diamonds their value will keep going up. Its important to continue to exercise moral responsibility in everything related to diamond and gemstone mining, and to continue to adhere to a respectful mining process and gemological certificates. This protects the environment and the diamond mine workers and also makes diamonds even more rare.
The benefits of diamonds as an investment channel
Diamonds are a convenient investment. They are small and not very fragile so they are easy to keep around and are not prone to breaking or getting destroyed easily. A diamond can be reset in to a different setting or cut in to a different shape so investing in diamonds is not a matter of taste like art or real estate. Anyone can resell a diamond easily because it can be used in many different things.
How to choose a diamond for investment?
As with any other investment tool, it is important to understand the variables that affect the value of the diamond you are considering in order to ensure that your investment will carry a respectable return. The more expensive, rare, special, or unique the diamond, the greater the return on your investment. A helpful rubric to determine the value of your diamond is The 4 C’s: Carat- this is the weight of the diamond. Color- this defines the color of the diamond and determined if your diamond is a rare color of how colorless your diamond is. Clarity- How included your diamond is and if the inclusions are visible. Cut- this can refer to the shape of the diamond but also the quality of how it is cut. You should know these specifics whether you are interested in purchasing an investment diamond or a diamond piece of jewelry.
Before choosing your diamond for investment, it is important to know the variables that affect the value of the diamond and choose the diamond that has the biggest potential for return on your investment.
What do you do with a diamond for investment?
Some investors will set the diamond in a piece of jewelry such as a tennis bracelet, an engagement ring, or a pendant. Those who are not interested in wearing the diamond will keep in in a safe at home or at a bank or in a safe place at home. The diamond should also be insured in case anything should happen to it.
Without comprehensive legislation on diamond trading, you can buy and sell any diamond at any price, but it is important to note that quality diamonds are really only purchased from professional and reputable diamond dealers. It is recommended to work with several diamond dealers to shop around to find the perfect diamond in your budget. Really high quality diamonds that are with investing in are not a trivial matter. Not all traders hold stones that have good characteristics in the four C variables on a regular basis. Once you find the right diamond, you can purchase and sell it at any time. From the day you purchase it, your diamond most likely will never lose its value Its value will only increase.