Why is buying diamond jewellery a good investment?

Why do diamonds make a good investment? 


Diamonds are one of the oldest gemstones, dating back to 4BC. They were used for trading due to their ability to retain their value over long periods of time. Today, this is still the case. Diamond value is not affected by inflation and thus, regardless of how the economy is doing, their value rarely depreciates. 

It is also important to consider the rarity of the diamond. As mining continues and the population grows alongside, the demand for diamonds is increasing while the supply of them decreases. If you decide to invest in a diamond now, in 50 years when the supply is significantly lower, the value of your investment will shoot up. 

Qualities that make diamonds a good investment

 
Size
One of the biggest advantages of investing in diamonds over other metals such as gold, is their size. Unlike gold and silver, diamonds are quite small. A diamond, no matter how small it is, costs double or triple compared to gold of the same size. This means that diamond embedded jewellery or ornaments, whether it is bangles or necklaces, make good investment options.

Durability
The natural durability of diamonds is another quality that makes them great for investing in. They are the hardest material on Earth that we know of. If you purchase a diamond, you therefore do not need to be concerned about damaging your diamond jewellery or stones you may have purchased. 

Colour
While white diamonds are the most common, this subsequently means that their value is less than that of colored diamonds. Naturally colored diamonds are incredibly rare, with red and blue diamonds being the rarest. Other coloured diamonds such as; pink, orange, green, and yellow diamonds are also quite rare and highly desired. The rarer the diamond, the higher the value and, because these gemstones don’t depreciate in value, the better the investment. 

Cut
The cut of the diamond may not have a significant impact on its value long term, however, it is still something to consider. Knowing what the market preferences are regarding the cut of the diamond will impact how easily you can sell the diamond, should you wish. Unless you are an expert in the industry, this can be quite hard information to find out. Here at Cuttings, we can help with that. Our staff are all highly knowledgeable and will be able to give you guidance. Get in touch with us on: 01843 223808

Things to watch out for


What metal is the diamond set in?
The value of the diamond you purchase can be impacted, for better or for worse, by the metal it is set in. Diamonds set in high carat gold or platinum are going to make a better investment than one that is set in zinc alloy. 

Is the seller certified? 
Ensuring that your seller is certified with the correct qualifications is important. They are the person that will provide you with the information of cut, clarity and value etc. so if they are not a professional, the information they provide can be very misleading. Subsequently, you could be buying the diamond for far more than it is truly worth. It is therefore important to check the seller’s qualifications and, if in doubt, speak to an expert. You can call us here at Cuttings, on: 01843 223808 and speak to one of our trusted and certified jewellers. 

Summary


Diamonds, whether part of jewellery or just the stone, make a great investment. The rarer the diamond you purchase, the greater the investment. 

To shop diamond jewellery that would make an amazing gift as well as investment, you can click here

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