When it comes to terms of investment for gemstones, diamonds are perhaps one of the best. There is a steady increase in diamond prices since the depression unlike copper, silver or gold and even other commodities. As with any other investments, investing in gems also has weaknesses; it is therefore important to learn how to purchase investment diamonds.
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Whether investing in gems is good or bad is out of the question. The aim of this post is to know how to invest on diamonds that will yield the best results.
• It is improbable that you can make a direct purchase from the Diamond Trading Company (DTC); the best option is to buy from a diamond wholesaler since it is the closest to the source; as much as possible, stay away from retailers.
• D color, IF clarity and other high quality gems may make good investments when looking from the "dollar" perspective; however, they have low liquidity. Lower quality gems are generally easier to sell, like those that fall under H color range and VS2 clarity; therefore they reduce the low liquidity of the gems. It is important to note that for short term investments, diamonds are not very good.
• If a diamond is greater than 1 carat, it is generally a better investment diamond. Diamond carat is an important factor when it comes to investment diamonds but most often it is overlooked. The reason for this is that over time, a full carat 1.0 shows greater price appreciation than a 0.98 carat.
• Buy only diamonds that have grading reports from well recognized labs like GIA, IGI and AGS. This will guarantee the quality of your diamonds; therefore if you must sell them as investment diamonds later on, you can negotiate a good price.
• Diamond cut is another essential factor in investment diamonds. Princess cut diamonds have increased in popularity resulting in a remarkable increase in its price; on the other hand because some other types of cuts are going out of fashion, their prices are falling. What remains stable is the Round Brilliant cut, which is why more investors favor it.
The best investment stones are those which have very high value per unit weight. There is no problem with transport and shipping because of this. One good reason was the launching in 2009 of DODAQ (Dealers Organization for Diamond Automated Quotes) for polished diamonds by Dutch Bank ABN Amro.
Lack of terminal market is one of the major issues of the diamond industry, and DODAQ has solved it. Also, the DeBeers announced the scaling down of their production because of the new diamond mines coming online; this might increase the prices of diamonds in the future. Therefore, now is the best time to learn how to purchase investment diamonds and to invest in them as well
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