Among all gemstones, diamonds are perhaps one of the best in terms of investment. Unlike all other commodities like gold, silver, copper etc diamond prices have advance upward steady since the depression. But diamonds also have their weakness like all other investments therefore learning how to buy investment diamonds is essential.
Without going into the much debated reasons of whether investing in diamonds is good or bad. We will move on to how to buy investment diamonds that will yield the best results.
- If you want investment diamonds stay away from retailers instead buy as close to the source as possible although it is very unlikely that you will be able to buy directly from the DTC (Diamond Trading Company), buying from wholesalers/dealers is your best option when buying investment diamonds.
- Although high quality diamonds such as D color and IF clarity may make good investment sense when viewed in term of dollar figures they do suffer from low liquidity. Generally lower quality diamonds such as those falling within the H range for color, VS2 clarity are easier to sell thus mitigating the low liquidity of diamonds to an extend. But remember diamonds do not make good short term investments.
- Generally diamonds with greater that 1 Carat make better investment diamonds. Also this is often overlooked, but the carat of the diamond is also an important factor when it comes to investment diamonds. This is because a full carat 1.0 tends to show a greater appreciation in price terms over time that of a 0.98 carat..
- Always buy diamonds with a diamond grading report either from GIA, AGS, IGI or other well recognized labs. These reports will serve as a guarantee for the quality of the diamonds you intend to sell thus you can negotiate for a better price for your investment diamonds when you decide to cash in
The type of diamond cut also play a significant role in investment diamonds. The price for Princess Cut Diamond has steeply risen in recent times due to its growing popularity however as seen in the past most of the different types of cuts tend to go out of fashion again resulting in a fall in the prices. However the Round Brilliant Cut has remained stable and is thus favored as an investment diamond.
The best investment reason in diamonds is because of it very high value per unit weight. This makes them unarguably the most efficient in storage and transport. Another good reason is the launch of an online exchange DODAQ (Dealers Organization for Diamond Automated Quotes) for polished diamonds in 2009 by Dutch bank ABN Amro.
This has solved one of the major issues of lack of a terminal market in diamonds. Also the scaling down of production by DeBeers announced sometime back as more mines are running out of their production life than the new diamond mines are coming on-line, this will only push up diamond prices in the near future.
Therefore learning how to buy investment diamonds and investing in diamonds now is a good time.