Are diamonds considered an investment?
To better understand this topic lets go back to ancient times when people were often forced to flee their homes as a result of war, economic crises, or social complex situations. Diamonds were considered an easy way to transfer all of the family's belongings into a parcel that could offer new life in a safer environment. But why are diamonds still considered a fine investment nowadays?
Let's find out by looking at a few aspects:
1. As mentioned above, a diamond is a very small item to carry and holds a large amount of financial value. The fact that a diamond is worth a whole lot of money does not prevent easy transportation by its owner.
2. Diamonds last forever! it won't break or wear off. As the hardest substance on earth, you do not have to worry about anything happening to it. Whether you decide to set it in a piece of jewelry or lock it in your safe, rest assured, your diamond is safe.
3. Diamonds are movable, meaning, you can easily sell them to a dealer and get your money back, the fact you wore it before does not change a thing. Unlike cars, there are no second-hand diamonds.
4. Diamonds are often compared to real estate. in both cases, investors are not looking for fast returns on their investment. The real estate market has had a lot of bubbles or crashes while the diamond market has proven to be much more stable. Although a diamond is a classic luxury item, real estate investors can benefit from their investment. On the other hand, diamonds have no maintenance fees.
5. Diamonds have shown an impressive growth of value in the past decades. While they used to be known as assets of royal families and individuals of high social or economic status only, nowadays, anyone can own a diamond.
Before heading to consult your private jeweler or buy your diamond online it is recommended to go through some basic guidelines on how to invest. I gathered the most important of them below.
1. Education - Learn the basics of diamond grading. The diamond language if I may say. Read about the 4c's. Show your diamond consultant you know your material. He will be happy to assist from this point.
2. Set your budget - How much do you plan on investing. Be ready with the needed funds. Diamonds move very fast. They can be here today, gone tomorrow.
3. Buy certified - Always ask for a gemological certificate or report containing all details about your diamond. It will confirm your diamond is accurate and genuine. It will exclude your diamond hasn't gone through any artificial procedure to improve its quality.
4. Reliable Source - Buy from someone you know or trust. Try to get as close to the source as possible. It is recommended to buy from a diamond cutter who got his hands on the rough material to ensure quality and avoid middlemen who will make your investment less worthwhile.