Smart Ideas: Diamonds Revisited

How to Invest in Diamonds

As with any investment, investing in diamonds comes with its own rewards and risks. Thus, you have to find the right knowledge to maximize your diamond investment. Investing in diamond can be an excellent addition to your self-managed fund or diverse portfolio. With perfect market conditions, investing in diamond is extremely secure and provides a steady, consistent growth history.

Outside the diamond industry, diamonds aren’t a great short-term investment but are an excellent medium to long-term investment that can be kept and appreciated. Diamond investing is very secure since the industry controls the market to stabilize diamond prices and among precious gems, diamond still retains its position as the most popular and costliest jewel in the world.

However, not every diamond is perfect for investment and to invest in diamonds successfully, the best thing to do is to look for a wholesale diamond dealer with whom you can consult about your options as well as sell you the best diamond investments at wholesale prices.
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Learn the essentials at least

Begin by learning the language of diamonds, or the basics. Start learning the four Cs related to diamonds.

Determine your budget

Bear in mind that diamond will be one of the investments in your portfolio. Of course, unlike stocks, your initial investment will be a little higher but this is not a reason to go beyond your budget or beyond the share of portfolio you had in mind.

Make diverse diamond investments

Just like other investments, it is often best to have diverse diamond investments. No matter your diamond budget, it’s wise to buy different varieties of diamond. For instance, if you desire pink diamonds, then it may be best that your second investment be yellow, blue or even green.

You have no idea which diamond will rise higher or which could sell faster later on. In addition, this is good as it will allow you to liquidate part of your portfolio should you need to distribute some of your funds.

Compare the prices

One thing you need to know about a diamond is that it’s not a stock. Its price is not determined by thousands of sellers and buyers bidding in a transparent market online. However, as there are numerous merchants online, you can easily assess the prices of the same diamonds. But this is more difficult to do with regard to colored diamonds as each is different.

Get rare but coveted diamonds

There’s really no point buying something that everybody has. But if you’re in possession of a natural color diamond, like pink or blue, then you’ll be in an exclusive league. However, go for the “desired” diamonds. Apply common sense and go with your instincts when it comes to buying.