ELEMENTS 5 CLUB
Why do you need to invest in diamonds?
Diamond jewelry is beautiful and unique, and it will last forever. But it’s also an excellent investment. Like any other type of asset, diamond jewelry increases in value over time. So if you buy a piece of diamond jewelry today, you could potentially sell it later for much more money.
Are you thinking of buying diamonds? Or wondering if some diamonds are a better investment than others? Let's take a look at the top types of diamond jewelry to buy.
The Best Diamond Jewelry To Invest In
When it comes to buying diamonds, it’s essential to think about what will hold value best in the marketplace, as well as what can be sold easily.
First, let’s consider the type of jewelry that holds its value exceptionally well: Diamond jewelry. When it comes to value, the value of the diamond jewelry is all about the perception of the market. And what’ s the one thing the jewelry industry cares most about? Rarity!
Rare diamonds are considered more valuable, overall. And the type of diamond that is the rarest? Coloured diamonds and especially very high quality white diamonds. Naturally coloured diamonds are extremely rare, with red and purple diamonds being the rarest of all. But pink, orange and yellow diamonds are also pretty rare and are thus very sought after.
When you're thinking about investing in diamond jewelry, you should think about the metal it's set in. Gold (yellow or white) and platinum are both good investments that tend to hold their value well. So if your diamond jewelry is made from either of those metals, this will help increase the overall value of your piece.
Next, let us talk about the second part of the investment equation – how easy your jewelry will sell. We’ll start off by talking about the rarity factor. Rare diamonds are generally considered to be those that fall into the “blue book” category – meaning they are graded higher than fancy colored stones (e.g., pink, yellow, green) and lower than fancy white diamonds (e.g., VS1). While these types of diamonds may be worth much more than other colors, they do not necessarily command the highest prices. In general, if you can find a diamond that falls within the top 10% of the blue book scale, you should be able to expect a price premium. However, keep in mind that the rarity of a particular stone does not guarantee a high price. For example, two identical diamonds could both be rated GIA color grades, yet one could be priced $10,000 higher than the other simply because it was found in an area where fewer people were searching for such a gem.
We've already discussed that rare diamonds hold their price well, but it's important to also consider what people want. Consider buying rare diamonds that have highly desirable cuts, like round or cushioned cut diamonds, instead of unusual, less popular cuts such as the marquis. Make sure to get an idea of what the market consistently likes before investing in any particular type of diamond.
One final note on purchasing jewelry: always, always ensure that the jewelry you purchase is certified. Do not trust a seller's claim that a diamond has a specific carat weight or color; instead, only purchase diamond jewelry that comes with an official certificate of authenticity.
Diamond Jewelry Investment and Diversifying
As with any kind investment, it is important to diversify your jewelry investments. Consider collecting various types of diamond jewelry (like blue diamond jewelry and yellow diamonds, for example), to protect yourself from market fluctuation.
Investing in diamond jewellery itself is also a good method to diversify your overall financial portfolio. Acquiring physical possessions like diamonds and precious metals can be an excellent way to safeguard yourself from the ups and downs of various other investments you might have, such as stocks. When your investment profile is varied, you can hedge your risks against the volatile market and set yourself up to achieve a greater level of success.
