Conventional investment options are not yielding good results, whereas the rates of interest are low. For the above and some other reasons, several individuals put money into diamonds. Are you seeking diamonds as a personal investment option? If yes, you should look to buy 1 carat diamond or a bigger stone. Not many people would make the mistake of purchasing a smaller than one-carat diamond, but several individuals would commit the following errors.
Overspending On Diamonds
Any common investment strategy is to purchase a product at a low price to trade it for an even bigger amount. Anyhow, that strategy may not work for diamonds. Firstly, it is potentially difficult to purchase the stone at a low rate; even a one ct diamond may cost more than you think. Secondly, there is the ‘mark-up’ from the retailer to consider. Therefore, you may have to visit many stores to make sure of purchasing the stone at as much competitive a price as possible.
Choosing A Setting With Too Many Metal Elements
Investing in any jewelry piece is not the best of ideas. It may or may not be a mistake depending on what the jewelry item contains. For instance, many diamonds are set with claws or other metal elements on ring bands. Unlike in the case of loose diamonds, all of those other ring elements will play a part in the resale price of this asset. These elements will be valued as pieces of scrap metal. With loose diamonds, you will not have to worry about that sort of value aspect at all.
Having Big Expectations
Jewelry pieces usually appreciate in value, and so do diamonds. Anyhow, it may not be the right thing to purchase a diamond or two while expecting to bag big proceeds from the resale in the future. A diamond takes time to have more value, yet several people who invest in it end up getting underwhelming short-term deals in its resale.
Purchasing The Wrong Form Of Diamond
There are two things to remember when purchasing a diamond for any purpose, it’s cut and whether it comes with some certification. The cut plays a big role in the rate and value of each diamond. When purchasing it for personal use, you may just go for the cut or shape you prefer. Anyhow, at the time of investing in it, you may not want to do so. You should rather choose the best-known diamond shape, which is now round brilliant, to tap into a larger resale market.