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Is a Diamond Investment Worthwhile?

Diamonds have always been considered to be an option for investment and they have been for a long time. They are not just beautiful and rare, but they also have intrinsic value. We cannot talk about the value of diamonds without mentioning that in the last decade, they have become more affordable than ever before.

Diamonds are one of the many investments you can make because of how rare and beautiful they are. They’re not only beautiful, but they are also a good investment in the sense that they can be better than gold for two reasons.

The first is that the price of diamonds has been stable in the last few years, while gold prices have fluctuated.

The second is that most people prefer to wear diamonds because they are more durable than other gemstones.

Some economists believe that diamonds may be a better investment than gold if the market for new diamond production slows down due to environmental concerns and/or supply constraints.

However, these factors can make the question harder to answer because it is unclear when or if this will happen in the future.

Related: 5 Reasons to Invest in Diamonds

Do diamonds make good long-term investments?

Most people would say that diamonds are an investment in the sense that they have value, but not a good one. Diamond prices are created by demand and supply which is why it is difficult to predict the price of diamonds.

Investing in diamonds doesn’t make sense because you can’t sell them like other investments such as stocks and bonds.Diamonds on black - Shira Diamonds

Diamonds are not as liquid as many other investment options and it poses a challenge and requires a lot of time when you plan on selling them in the future.

They’ve been a symbol of luxury and wealth for centuries but they are not the best investment. Diamond prices are set by the DeBeers company through their diamond monopolies.

These monopolies are created to ensure that diamonds maintain their value as a luxury product and provide market stability.

Diamonds are not as rare as people think they are; most mined diamonds come from just 15 countries – so the price is controlled by the DeBeers company to make sure that new diamonds don’t flood the market and lower their value.

The problem is that because of these factors, it’s hard for diamonds to go up in value like other investments do- which makes them a bad investment for people who want to save money or get rich quickly.

Are diamonds a good investment this year?

It is important for investors to do their homework and research on different investments that they might put their money into. It is essential to know what you are getting yourself into before making any investments. There are risks associated with any investment.

There’s always a chance that you could lose your money, but there’s also a chance that you could make more than what you invested.

You need to be willing to take the risk if you want to make the most out of your investments.

Female designer making jewelries at a jewelry shop - Shira Diamonds

Diamond Investment Statistics

As far as the statistics go, diamond sales have been on a slow incline. This is not anything new or groundbreaking. Diamonds have always been an expensive purchase, but the increase is minimal and does not seem to warrant any concern.

Diamonds are synonymous with wealth and luxury, so many people buy them to show how successful they are in life.

Despite this, diamond sales are still slumping across the world due to fluctuations in demand and supply from countries like China and India. Furthermore, in recent times, there are companies that have developed amazing technology to create diamonds.

This new technology allows for a cheaper, faster, and more environmentally-friendly way to produce diamonds. The diamonds are grown in laboratories and are created from carbon atoms. The process is environmentally friendly and saves a lot of money.

How Diamonds are given their value

Diamonds are a classic investment people have historically been drawn to. However, there are many reasons why this type of investment is not for everyone. Valuation is one of the biggest barriers for most people who are interested in diamond investing.

The problem with valuation is that diamonds cannot be appraised like other investments.

There’s no way to accurately put a current value on a diamond since it depends on the market and what individuals agree to pay for it. It also doesn’t help that different gems have different values, so you might be paying too much or too little for your gem.

Four Cs to remember when buying or investing in diamonds:

  • Carat

    The weight is the most straightforward factor in a diamond’s value. There are many factors that contribute to a diamond’s weight. The most common diamonds are usually weighed in carats, so it’s important to know how much the carat weighs.

    Carat weights can vary depending on the type of gemstone you’re trying to weigh. Diamonds are weighed in carats, but emeralds and rubies have their own measurements of weight as well.

  • Color

    The grading scale ranges in color and intensity from the “D” grade with the least amount of color to the “Z” grade with the most amount of color.

    In order for a fancy colored diamond to be valued higher than another diamond of comparable quality, there has to be something “special” about the way it looks.

    The Donnersmarck Diamonds pair - Shira Diamonds

  • Clarity

    The clarity scale is an indication of the number and appearance of inclusions that are visible under 10x magnification. The number ranges from 0 to 10, with 0 meaning the diamond is flawless and 10 meaning it has many blemishes.

    The letter ranges from A to F, with A signifying a diamond that has no blemishes under 20x magnification. They get higher as they reach E and then F, which means there are many blemishes in a diamond.

  • Cut

    The cut refers to the design of the diamond and the way it interacts with light. The quality of a diamond is determined by how well it reflects light, how much light it refracts, and the number, size, and shape of its facets.

    Trilliant Cut Blue Topaz Sequence - Shira Diamonds

    The cut is one of four Cs that determine a diamond’s quality. It determines how well a diamond reflects light (that’s where we get that sparkle!), how much light enters through the top to be reflected back out again (also known as brilliance), and also affects a diamond’s scintillation – or flashes of rainbow colors when moved in different lights.

     

    Related: 5 Must-Ask Questions When Buying Diamonds

In addition to investing in diamonds themselves, you can also invest in mining companies that mine diamonds.

These companies have found success when they diversify their holdings by investing not only in diamonds but also other commodities like gold and copper.

You can also invest in diamond stocks, the demand for new diamonds is growing every year, and this is why many people also consider diamond stocks.

There are a lot of opportunities for you, new and veteran investors alike. The key is to find the one that best suits your needs.

You Can Still Benefit from Investing in Diamonds

The benefits and risks of investing in an industry such as diamonds are always present.

An investor must be willing to accept the risk inherent to any type of profit potential.

However, when you look at some options that can help reduce these risks, then perhaps it is worth considering investing in this industry. Contact Shira Diamonds today!


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