Wondering, are diamonds a good investment? A lot of people are asking this question. In short the answer is yes, but as always, invest wisely. Stick with the basics and buy based on the stone and not the setting. Unless it is extremely unique, the setting will be valued according to its weight. What a jeweler charges for a ring setting will generally leave little if any room for resale profit.
Carat - pay attention to carat weight. This is one time when size does indeed matter. Diamond chips and very tiny stones may be quite lovely, but they will not increase a great deal in value. More carats means a bigger diamond. It potentially means greater value as well.
Clarity matters. A huge stone filled with inclusions (flaws) will often have less value than a smaller one that is flawless. Inclusions will result in a stone with less visible sparkle. Many flaws will result in a dull looking stone. Diamonds with less inclusions will be more costly. They are also more likely to increase in value over the years. Like just about any collectible, better quality is more likely to remain most desirable.
Beautiful examples are available in a variety of colors. Some are more rare than others. In fact, the famous "Hope diamond" is blue. Just make certain that poor clarity is not being promoted as "yellow" or another color. If it is dull, it is more likely an inclusion than a yellow stone.
This is one of the strongest materials known to man. Cutting these stones is quite an interesting and labor intensive task. Choose wisely. Be sure to purchase from top quality cutters. Choose more popular cuts in order to increase the likelihood of possible resale. The most popular cuts are usually round and princess.
Next time someone asks "Are Diamonds a good investment?" Tell them why it depends on the stones they choose to purchase. Remember, carat, clarity, color, and cut are the four rules to making the right choice.
Carat - pay attention to carat weight. This is one time when size does indeed matter. Diamond chips and very tiny stones may be quite lovely, but they will not increase a great deal in value. More carats means a bigger diamond. It potentially means greater value as well.
Clarity matters. A huge stone filled with inclusions (flaws) will often have less value than a smaller one that is flawless. Inclusions will result in a stone with less visible sparkle. Many flaws will result in a dull looking stone. Diamonds with less inclusions will be more costly. They are also more likely to increase in value over the years. Like just about any collectible, better quality is more likely to remain most desirable.
Beautiful examples are available in a variety of colors. Some are more rare than others. In fact, the famous "Hope diamond" is blue. Just make certain that poor clarity is not being promoted as "yellow" or another color. If it is dull, it is more likely an inclusion than a yellow stone.
This is one of the strongest materials known to man. Cutting these stones is quite an interesting and labor intensive task. Choose wisely. Be sure to purchase from top quality cutters. Choose more popular cuts in order to increase the likelihood of possible resale. The most popular cuts are usually round and princess.
Next time someone asks "Are Diamonds a good investment?" Tell them why it depends on the stones they choose to purchase. Remember, carat, clarity, color, and cut are the four rules to making the right choice.
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To read additional information about the diamond ETF, and to learn more aboutare diamonds a good investment, simply call Investment Diamond Exchange (IDX) and account representative will assist you.
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