Diamonds are colourless stones that are primarily used to make jewellery. There are other applications of this beautiful stone and among them is buying diamonds as an investment. Diamonds are an expensive commodity owing to their difficult extraction and processing. Some diamonds are also very rare and this rarity makes them an excellent investment because of their appreciating value.
Although, the resale value of diamonds is considered to be less, there certain heirlooms and rare diamonds that are worth millions and their value keeps increasing every year. Additionally, diamonds are physical commodities that do not take up much room and yet prove to be excellent financial hedging tools.
The advantages of investing diamonds such as Hatton garden diamonds are many. They are physical commodities that are easy to store. You can have diamonds worth millions and they will still take up a small space in your safe. Diamonds are extremely hard and there resistance to scratches and wear and tear. They are durable and remain in good condition for a long time and can therefore be passed down from one generation to another. This property of diamonds also allows you to enjoy the diamond jewellery while you have it. You can wear it during the special occasions. All these factors make diamonds an excellent investment choice and here are a few tips if you are thinking of investing in diamonds.
Educate yourself regarding the properties of diamonds, the most important ones being the 4 C’s. The carat, colour, cut and clarity of diamonds determine their price. This will help you to determine a certain budget for investment according to your means. You don’t have to spend a lot, but a substantial amount to get something good within your budget
When you are investing in diamonds, it is wise that you don’t invest in the same kind of diamonds. Always diversify the kind of diamonds you have so that even if one kind loses its value in future, you will have another kind that you can depend on.
Compare the prices of the diamonds that you are buying. It is possible the different outlets may have different prices for similar kinds of diamonds. Additionally, buy only certified diamonds. There several fake diamonds in the market that are sold at attractive prices. Do not fall for them. Buy only the ones that have been certified by an authentic and dependable organization.
Always buy diamonds which are rare yet desired. Having a very common type of diamond will not fetch you as much since most people will be having that design. Having a rare item will have more value than a common one. That said, the rare item should also be something that is desired or else will not find any customers for it. For example, it is easier to sell a cushion cut or round cut diamond engagement ring London than a marquise cut diamond ring since the former is more desired than the latter.