Over the longer term diamond prices have consistently increased, so many people have considered them as an investment. Here are 7 things you need to consider before you purchase. When it comes to buying a stone for investment, the secret is in the planning.
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1. Buy a piece you like
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Ask yourself, are you buying primarily for investment or personal pleasure? If the answer is investment, it’s important to note that this will be more long term. You will need to wait 5-10 years to capitalise on reselling. Diamonds are not the kind of investment that earns you an income. For this reason, it’s wise to choose an item that you like (the original source). Then your income becomes the joy you get from wearing the piece.
2. Choose a carat, colour and clarity that is in demand
Choosing the type of diamond that is in high demand makes it easier to resell later.
When you’re buying with an ultimate goal to resell, you need to choose a diamond that there is a demand for. Surprisingly, this doesn’t always mean you have to find something unusual or even a stone that has a particularly high colour and clarity. Stones over 2 carats with either good colour or good clarity make a good choice. (Buying a stone with both good colour and clarity can take the price point beyond that of the normal investor.) Choosing the type of diamond that is in high demand makes it easier to resell later. For this reason they make an ideal investment piece. Larger size diamonds are in demand as well as being in short supply.
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3. Do your market research
Take the time to shop around to ensure you’re getting value for money. This way you can be sure that you are buying at a price that will maximise your investment later. Buying at auction is a good idea because it means you avoid the margin included in retail prices. Know your price points in relation to the colour, clarity, cut and carat weight.
4. Certification / authenticity You need a report from a laboratory that’s recognised within the market that you are intending to sell. This makes sure that the quality of the diamond is recognised when it comes time to resell. A certificate gives your potential buyer confidence that they are getting what they are paying for.
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5. Consider your outlets for reselling
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If you’re buying to make money, you need to measure up the various different ways you can sell your pieces.
6. Calculate the costs involved in buying and selling
If you don’t have your own network within which to sell, you may need to commission someone to do this on your behalf. Identifying these and other costs before you purchase will help you gauge the practicality of your investment.
7. Avoid treated and synthetic diamonds
If a diamond is colour-treated, fracture-filled, or laser-drilled, its value is greatly reduced and difficult to resell. This takes us back to the need to get appropriate certification. Not only are they lower in value, they are less appealing to potential buyers. Plus, it has the added benefit of bringing you a little sparkle to your life! In short, purchasing a piece for personal pleasure that has genuine demand within the market is the safest way to buy for investment.
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Jewellery outlets prefer to present their diamonds in bright lighting. This qualified prospects buyers to feel which the major diamond within the piece is really larger than it really is. Ask what the whole carat pounds in the center stone is. Your lights make diamonds shine. Jewelry retailers are helped to round away diamond weights. The tag about the piece of jewellery, usually a ring, only states the whole carat fat of all diamonds inside piece, as an alternative to itemizing the overall weights separately for every diamond. Also beware of fractions. Jewelry also outlets generally run ‘fluorescence’ scams to varying degrees. Inquire to find out the diamond in the unique, darker form of lighting at the same time. Referring with a diamond as being a blue-white diamond is such a rip-off. A blue-white diamond appears to be incredibly special and special, but the truth is, this form of diamond is of lesser top quality although the jeweler will look at to produce you’re thinking that you’re getting anything special.
Some actually unscrupulous jewelers goal those who want appraisals on diamonds that had been supplied to them as gifts or that were purchased elsewhere. Get a second, third, and also a forth opinion ahead of using any motion. They are going to seek to inform you that the diamond is worthless, or value much less than it actually is value and offer to choose it away your fingers or business it for any a lot far better diamond, alongside while using cash to create up the difference. This is referred to as low balling.
Jewellery outlets usually run ‘fluorescence’ scams to varying degrees. Inquire to find out the diamond in a very various, darker sort of lighting in addition. Referring to some diamond as a blue-white diamond is this kind of a scam. A blue-white diamond sounds really exceptional and exclusive, but in fact, this kind of diamond is of lesser quality even though the jeweler will check out to create you think that you will be finding some thing unique. Jewellery outlets also like to present their diamonds in bright lgts. Lights make diamonds shine.
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