Diamonds as an investment: A guide

31^st August 2020

The editorial unit

The editorial unit

31 August 2020

While most people are still reeling from the turmoil caused by the global pandemic, many are also looking for smart ways to invest money to support them during difficult times. That is why it is not surprising that investments in commodities, namely gold and diamonds, are rising. In this article, diamonds will be discussed as an investment never to be regretted.

Let’s dive in!

1. Which diamonds are worth the investment

It is a little known fact that the beloved white diamonds are attributed value based on their popularity. In other words, because it is not difficult to source these types of diamonds, their price is driven by market demand. Should that demand shift, their value would as well.

Within the diamond industry, however, there are still many rare and unique pieces that will maintain their value, like a pink diamond ring. Pink diamonds are not only beautiful and romantic, but they are also shrouded in mystery. Unlike other fancy coloured diamonds, the source of the colour of the pink diamond is still unknown. While scientists debate, let’s take a look at how rare and therefore valuable a pink diamond ring is.

According to the experts, a pink diamond can cost anywhere from $30,000 to $100,000 per carat. That is 20 times the price of a white diamond anywhere. Similar to a piece of property, this type of investment has incredible growth potential and ROI.

2. Certification and authentification

Prior to any investment, the certification is important. Much like gold bars and other commodities, diamonds must be certified not only for their authenticity but also for their four Cs. This is a universally accepted grading scale that refers to:

1. Cut
2. Colour
3. Carat
4. Clarity

Each of these affect the price and status of the diamond. For the scope of this article, let’s focus on the two major components here, colour and carat. The carat refers to the weight and not the size of the diamond. The colour in a fancy coloured diamond is paramount. The lighter the colour, the lower the price, so be very wary when choosing an investment, as quality will always offer a stronger return than quantity.

Make sure the diamond has been certified by a respected leader in the industry such as the GIA. Asterria, one of the experts in fancy coloured diamonds in the world, offers authentic and certified diamonds unlike like anywhere else in the world. A worthy investment choice may be a pink diamond ring like their half carat pink diamond ring in a halo setting.

3. Choose your jeweller wisely

Unfortunately, there are scammers out there who may try to take advantage of customers as they shop for their investment. Here are a few helpful tips so as not to lose out.

1. Research the jeweller thoroughly
2. Do due diligence
3. Review the certification and check that is valid

To see real returns on an investment, a pink diamond is a great way to start. Contact your local specialist today to choose from a variety of beautiful and valuable jewels!

The editorial unit