Do you plan on turning your previous jewelry piece into an investment choice? If so, you could include diamonds in your new investment portfolio.As per industry insiders, there is a good RoI to diamonds. Over the last few years, diamonds have been having a price spike. However, as with other forms of investment, there is a set of pros and cons to investing in diamonds. Here, we will discuss what to consider when you look to even buy 1 carat diamond.
Learn The Basics
A Diamond And Its Value
As for almost everyone keen on investing in diamonds, valuation is among the most important obstacles. Almost everyone knows that a diamond is precious but lack an understanding of the factors that make it more valuable as compared to other gems. Be familiar with the clarity, carat, color and cut of diamonds.
The word carat refers to a diamond’s weight, and it plays a big part in determining the stone’s value. A one ct diamond weighs around 200 milligrams, which is about the same size as a paper clip.
When considering investing in diamonds, know that the less their colors are, the better it would be for you. As for clarity, most diamonds have internal or external flaws. The lower a diamond’s flaw count is, the better would be its clarity grade. On the other hand, the cut relates to the shape of a diamond, and it impacts how the stone interacts with different forms of light.
Establish A Budget
After mastering the basics, determine how much money you wish to pay for a diamond. Avoid making diamond jewelry your only investment. Rather, make it a part of your entire investment portfolio. If you plan on investing in a diamond jewelry piece, confirm that its price does not go beyond your budget.
Do The Final Purchase
After setting a budget, you should shop around to get the best possible diamond deals. Consider investing in a GIA-certified diamond as it is among the best-known gems. It is vital to have diamond certification when selling or buying a diamond or diamond jewelry piece.
The last mistake to avoid when making the purchase is investing in the wrong stone. It is where the certificate will come into the picture. Whether you buy a pendant or a diamond engagement ring, confirm that it features a certified diamond or diamonds.