Is Buying a Diamond Good Investment? 10 Reasons Why It Is

 

Everyone would love to invest for the sake of a better future. It is good to have a strong and powerful investment that can give an excellent return. There are dozens of investment opportunities and various businesses/things in which people can invest. Some of the areas of investment are property, cryptocurrency, bonds, stocks, insurance policies, and investment funds. There are many areas where you can invest, which is why people get confused. It is difficult to pick the right area to invest in.

Diamonds can also be considered as a valuable investment for a better future. They can be a guaranteed money-back asset for anyone who is interested in investing his/her money for the long term. Diamonds are valuable, and they are considered an investment commodity like gold. If you are thinking of giving a boost to your financial portfolio, then you can choose diamonds as an excellent option. In this article, we will discuss whether buying a diamond is a good investment or not? Furthermore, we will share ten reasons to explain why it is a good investment. For your ease, we will discuss the most important points a buyer should know before investing money in diamonds so that you can rest assured for the future return.

Before we go any further, we would like to tell you that we are referring to natural diamonds only. Lab-created diamonds lose their value just after the purchase, so they are not suitable for investment. We are discussing real diamonds only.

Is Buying Diamond a Good Investment?

The clear-cut answer is "Yes". Investing money in buying diamonds has been accepted as a brilliant way of gaining profit. The prices of diamonds always go higher, and you will get better prices with the increasing inflation. It has been noticed that the price of natural diamonds always increases. You will surely get higher than your investment if you have purchased the right piece.

Keep in mind that not every diamond can give you a very good return, as things depend on rarity, rate per carat at the time of sale, its grades, and a few other things. Thus, you need to pick everything carefully to get a higher return on investment. Nowadays, diamonds are popping up at a great rate for investment purposes. People know the importance and value of diamonds; that's why they are moving their heads toward diamonds. 

Gold is also an excellent investment, and people also invest in it. There is no doubt that gold retains its value and it is a safer investment, but sometimes diamonds can have a better resale value; however, it depends on various aspects. Now, diamonds have gained great significance in the investor's sight all over the world. 

Moreover, a diamond must be considered a long-term investment. You are not going to get higher returns in the next month of your purchase. If you sell the diamond after a few months of your purchase, you will eventually lose money. But as a long-term investment, it is excellent as the rate per carat of diamonds increases every year. Thus, you can have a better return in the future. 

10 Reasons Why It Is Good to Invest Money In Buying Diamonds

The increasing demand and high value of diamonds are making it a huge and fruitful investment idea. Diamonds last for a long time. Their values always blow the buyer's mind and convince them to add this option into their investment portfolio. 

Here are the ten reasons why people should invest their money in buying diamonds and what they will get in the end. 

1) Increasing Rates of All Sized Diamonds: 

The very first reason for investing in diamonds is that their rates have been higher and higher since their discovery. Other gems or metals also have growth rates, but diamonds do not have any opponents in this region. The rate per carat of all sized diamonds increases with time. The rise in the prices depends on the carat weight of the diamond, which means large diamonds have a higher increase in rates as compared to small diamonds. However, the prices of all diamonds increase with time, no matter whether it is one-carat or two-carat.

Finding out the price change of diamonds is very pivotal for investors. In order to understand the profit percentages, you need to have a little glimpse at the history of diamond's price. The prices of diamonds have increased more or less 32-33% over the last ten years. It is an approximate average of 4% for every single year. The percentage is not fixed; it changes with time.

2) High Value:

Everyone should make his/her investment in something big and substantial. In this regard, diamonds are acting as a pop-up option. Diamonds have very high prices all over the world, so it will be great to invest and achieve huge profits.

On the contrary, if you invest in something cheap just to save money, you will only get a little bit of profit and purchase ratio. The actual earning will come from the huge interest you earn from long-term investment. 

Buying a single thing instead of many has another advantage; you will get your complete, huge, and full profit (amount) in one deal. In contrast, if you invest in multiple things, you will have to show tough patience while waiting for different clients or buyers for different things. It can take a lot of your time to take your profit into your hands. 

3) Limited Availability:

This is another reason why diamonds are considered good for investment. Diamonds are available throughout the world, but they are limited. No doubt, new techniques have now been introduced for creating diamonds artificially. Even then, people are stuck to investing in something real and natural because artificial diamonds have no resale value.

Natural diamonds are limited, so it is clear that in the next few years, their importance will increase at a great rate. People who invest their money today will have something very rare and unique in the future. Diamond lovers should try to collect them because of their insufficient availability.

As they are produced after billions of years and are short in nature, that's why they are always welcomed warmly in the market. There are very shiny chances to get your quality customer for making your deal fast and consistent. This reason will make the dealings of investors easy and fast at the time of sale.  

4) Unsaturated Market Compared to Others:

We are suggesting investing in buying diamonds because it has a very less saturated resale market as compared to others. Comparatively, gold or other metals have a resale market soaked up with investors and resellers. That's why it becomes very tough to shine in these types of areas.

On the other hand, a diamond market is a place where you can get your customer, buyer, or client very easily without any fear. It makes the dealings easy, reliable, and quick. 

5) Rare in Nature:

People of this present era are moving toward uniqueness and quirkiness. The importance of diamonds is increasing due to the uniqueness of diamonds. Anyone can easily make a guess-estimate of a diamond's value in the future. 

It is a solid reason for investing your money in buying diamonds. The world is accepting its distinctiveness, and the investors will get good profits if they try to think something broad by investing money in buying diamonds.

You will also have the benefit of owning something great and unique after investing your money in diamonds. It will give you the confidence to own such a rare and loving gemstone in your surroundings.

6) High Demand in Market:

Diamonds have very high demand all over the world because it has been accepted as a favorite option for engagement rings, weddings rings, and jewelry. People with deep emotions also try to get this gemstone for their loved ones. People use it for their special day.

Diamonds have a specific rate in the market. You can easily get an appraisal according to that rate. Moreover, it will also become a source of relief for the investor to have something demanding, and he can sell it whenever he wants. 

7) Always Acceptable:

The season of love and gifts never ends. Diamonds are always welcomed and accepted by customers throughout the world. 

Even if you are not thinking of selling it for profit, it will be a great thing to own and give it to your loved ones. It is always accepted as a nice article of jewelry, a rare thing for collection, a nice business, and a beautiful gift. It is accepted in a lot of manners, and it will definitely have great significance in the future too.

8) Guaranteed Money-back:

Whenever you think about investing in diamonds, you should be sure and clear to have guaranteed money back. It is good for long-term investments, and you can resale it when you see high rates per carat. Investing in diamonds does not mean waiting for a long time in search of a client.  

As we have mentioned above, they are always accepted warmly all over the world, so you can have your profit without any hurdle in the diamond market. 

There are more and many chances to have a higher price than your investment in the future. Otherwise, you will definitely get your investment back after selling your diamond to anyone. But keep in mind that it requires time. The rate per carat does not shoot rapidly; it takes years.

9) High Dealings:

You will always have high, experienced, and efficient dealings with your clients. It will give you a chance to explore the established side of this world. You can give a boost to your business by investing and diving into the diamond world. There are many diamond markets in the world, and you can get good deals for your piece. 

10)Unbreakable:

Diamonds are unbreakable, and anyone can save them for a long time after investing his/her money into them. Real and experienced investors try to invest money for long periods. In this regard, diamond is a very good option to choose from.

It will retain its properties even after a long period of time, and you will get the same effects and qualities of diamonds after decades.

How to Make Your Diamond Investment Profitable

Investing in diamonds can be profitable in the long term if you select the right diamond. Let's have a look at the important things that you need to consider while buying a diamond for investment.

a) Select a Large One: 

Diamonds of large size are considered more rare and unique as compared to small ones. They have a very high value. On the other hand, small diamonds are more common and are easily available in the market. That's why we always recommend having a big size instead of two or three small-sized diamonds. 

The large size of the diamond will have much more impressive resale rates and demand. Once you invest in owning a big diamond crystal, you will always be happy with your decision. It will attract many reliable and efficient buyers because of buying large diamonds. The collectors and vendors would love to have such a piece. However, this type of deal can only be done between two well-reputed and high-level dealers. 

One carat and smaller diamonds are commonly available. People usually go for 1-1.2 carats for their rings. You need to secure a bigger diamond according to your budget. The bigger it is, the better it will be in terms of investment.

b) Diamond Instead of Jewelry:

Some people invest their money in buying diamond jewelry which is not a good idea at all. Buying a diamond crystal and buying a piece of diamond jewelry (a diamond ring, diamond necklace, or diamond earrings, etc.) are totally different from one another. It will have a drastic effect on the price difference.

A diamond ring will include the price of diamond crystals, metal, and other materials used for its creation. Moreover, the manufacturing charges also take part in the budget, which is not a good thing. Whenever you try to sell your jewelry, you will be paid only for metal and diamond crystals. 

We are suggesting a piece of honest and effective advice to invest money in securing a single diamond crystal instead of diamond jewelry. It will minimize the other expenses, and you can have a large size diamond with a little bit more money.  

c) The 4Cs of a Diamond:

4Cs means Carat, Cut, Clarity, and Color. These are the most important factors that distinguish a perfect diamond from an imperfect one. The price of a diamond can also be affected a lot with minor mistakes in the diamond's 4Cs.

  1. Carat: Carat defines the weight of the diamond's crystal. You can also imagine the size through the carat. It is basically a unit to measure the diamond's weight. You can have a diamond of 1 carat, 2 carats, and so on. We have already discussed that you need a bigger diamond for investment. It will be profitable in the future.

  2. Cut: Cut means the angles, symmetry, and facets of a diamond crystal. An ideal diamond will have fine and aligned cuts that will maximize the sparkles. You must invest in an excellent cut diamond. People never compromise on the cut as it gives brilliance to the diamond. So, you must get the ideal/excellent cut.

  3. Color: Diamonds come in many colors, even in many shades. The clearest and white diamond will always have more price. However, you can go a bit lower in color as people do not always go for D-F diamonds. They prefer G and H to save money. But as an investment, you can consider D-F as well.

  4. Clarity: Inclusions and blemishes show the imperfectness of the diamond. A diamond with inclusions and blemishes can spoil your bright imaginations and plans of future investment. So, always keep in mind to have a clear, blemishes, and inclusion-free diamond of high clarity grade. At least, the diamond must be clear to the eye. If it has inclusions, they must not be visible. The position and size of inclusions also matter. Thus, you cannot just stick to the clarity grade; you need expert advice as well.

d) Check Standards:

Certification is the whole story of a diamond's value and grades. It plays a very important role in fixing the price of diamonds. You can check the standards by examining the certifications of that diamond's chunk. Your investment must be secured, so you need a certificate.

A diamond certified by any well-reputed gemological institutes like GIA, IGI, AGS, and GSI can easily be trusted as a demanding diamond's crystal. These are the best certifications that people prefer. GIA is the most trusted and well-known certificate provider. 

These certifications can increase your demanding price whenever you want to sell your diamond. The certificate of any of the above-mentioned institutes will act as evidence of the high grades of your diamond. It will help you to make an honest deal. 

Final Words

Is diamond a good investment? It is a commonly asked and concerned question. The answer is "YES". It can be a good idea to save money and gain profit through investing your cash into diamonds. However, you need to select the right diamond that can give you the best return. Moreover, it is a long-term investment, so you need to have patience. 

Diamonds are very rare, demanding, expensive, beautiful, and accepting; that's why anyone can have a deal anytime when needed. You can invest in diamonds, but make sure to take advice from experts. You can have a free consultation with our experts, and we will help you out in buying the right diamond.