On paper, diamonds make great investment sense. And, like most gems and precious metals, past performance shows that they will increase in value over time.

Buy Diamonds In Thailand Online

In reality, however, diamonds have very sketchy investment potential. Unlike gold – which is valued by weight because let’s face it, one block of gold is pretty much the same as every other block of gold – diamonds don’t have a universal price per gram. One of the main reasons for this is that diamonds come in very inconvenient packages. When no two stones are exactly the same, every diamond has to be valued on its individual merits and, most of the time, that valuation is going to be somewhat subjective. This means choosing which diamond to buy in the first place can be the trickiest part.

Despite this, many people are investing in diamonds – more so, now that traditional investment opportunities are failing to deliver the goods. Low long-term interest rates and uncertain markets make investing in diamonds look appealing to add to a diverse portfolio. But how do you go about buying a diamond for investment, and how can you be sure of making a good return? With that in mind, we’ve identified three of the most common mistakes people make when they invest in diamonds.

For this blog, we are talking specifically about natural diamonds – if you want to know how we feel about investing in lab-grown diamonds, you can find out in mistake number 3..!

1. Paying too much

When investing in anything, the mantra ‘Buy low, sell high’ will serve you well. When it comes to diamonds, however, ‘buying low’ is harder than it looks.

Can You Buy Cheap Diamonds In Thailand

First, there’s tax. That means your diamond will need to grow in value by 20% for you to merely break even.

Buy Synthetic Diamonds

Second, there’s the retailer markup (if you haven’t bought privately). We can’t tell you how many stories we’ve heard about people trying to sell their ‘investment’ diamonds to the trade – only to realize they were completely stung on the original purchase price. Make sure that you’re buying at the most competitive price. This can vary from store to store so it’s crucial to shop around.

Buy Diamonds In Singapore

Third, there are hidden costs – such as the price of a setting, if you buy it set in a piece of diamond jewellery. And what about insurance? If your diamond jewellery is valuable enough to be an investment it should probably be insured – but that’s another expense you’ll need to recoup when you sell. As cool as it would be to have a pouch of loose diamonds locked in a safe (perhaps concealed behind an ornate painting) most people want to enjoy their diamonds, which means having them mounted in a setting; perhaps a diamond pendant or diamond ring. Yet when it’s time to sell, the setting will most likely only be worth scrap metal prices.

Buy Diamonds In Thailand 2017

2. Expecting too much

Investing in diamonds is possibly the worst get-rich-quick scheme in the world. Diamonds take time to increase in value, yet many diamond investors are disappointed when they don’t see short-term results.

Diamonds are a commodity and like any commodity, their value can go down as well as up. On the whole, based on past performance, they go up – just very, very slowly. It’s virtually impossible to make a profit in the short term so it’s not just realistic to buy a diamond and expect to sell it for a profit after five years.

Buy Gia Certified Diamonds

This means when you invest in natural diamonds, your money is going to be locked up for a while (albeit in a very lovely sparkly package) so it’s important to be absolutely sure that you a) want to invest it in this way, and b) can afford to. If you need to sell early to get your money back you’re highly likely to get a lot less than you spent in the first place (see ‘Paying too much’ above).

Which Jewelry Stores Buy Diamonds

At the very least, buy something you love, perhaps a pair of diamond stud earrings (wink, wink!). You won’t be disappointed if it doesn’t earn you as much in the long run as you hoped. That way you can enjoy it while you’ve got it.

3. Buying the wrong sort of diamond

The final hurdle when buying a diamond as an investment -. Some diamonds are easier to resell and are more likely to fetch a better price so investing in one of these will obviously make your job a lot easier in the future. The one where most buyers fail – is knowing which diamonds are worth investing in.

Best Place Buy Diamonds Online

The most important thing is to buy certified. A certified diamond is far easier to resell than one that hasn’t been independently certified and will be more desirable – especially if it’s certified by one of the most highly respected labs (we recommend GIA). And when we say certified, we mean independently certified, not one of those highly questionable certificates provided by the shop you are buying from… we still can’t believe this is “a thing” anymore (rant over!). This is true whenever you buy a diamond, whether it’s as an investment or as an engagement ring, for so many reasons.

The shape of the diamond can also be a factor. The opposite is actually true. If you’d rather not buy a round, opt for one of the other popular shapes, such as the Princess cut… but really, just buy a round diamond! However, don’t be fooled into thinking you have to buy the biggest, best-quality diamond in the world. This is really down to the fact they can always be made, whereas there are only a certain number of natural diamonds on the planet making them much more likely to increase in value over time. You should aim instead to buy a high-quality diamond of mass-market appeal – again, this will be more desirable to both trade buyers and private individuals. An extremely high-spec diamond will only be of interest to a select few buyers (those of bulging wallets and gold-plated mansions) and will be harder to sell on. Round brilliant is the most popular diamond shape (about three-quarters of all diamonds sold are round) so investing in a round diamond will give you access to a bigger resale market.

And finally, if any tries to sell you Chocolate, Champagne or Cognac diamond for a premium… run for the hills!

Avoiding the pitfalls

You might now be thinking that it’s not worth investing in diamonds -. If you want to buy (on the main page) diamonds solely as an investment you’d be right. Just be sure to follow the Diamond Rules (they’re so much sparklier than golden ones):

– Buy at the lowest price you can, without VAT if possible
– Buy a high-quality certified diamond in a popular shape
– Think about when you will want to sell – and how
– Buy something you love

Cheapest Place To Buy Diamonds In The World

If you’ve followed the advice above, you’ll need to decide if you want to wear and enjoy your investment or lock it up until you sell it. Of course, this one is a personal choice, as there is a cost to having it set in jewellery which you probably won’t recover.

If you cherished this article so you would like to acquire more info with regards to Buy Diamonds Rings kindly visit our website.