Are Diamonds A Good Investment?

A diamond is an exceptional, beautiful, and special piece of jewelry that can last a lifetime, but most people only consider it valuable when purchasing an engagement ring. Yet, diamonds can be a significant investment, since these stones have unique characteristics that make them worthwhile. So, should you invest in diamonds? Read on to find out.

Diamonds Are A Good Investment

Since the 2007-2008 global financial crisis, most people have considered other alternatives as an option to secure their assets. Investing in physical commodities became a definite solution, resulting in the increasing value of gold, silver, and now diamonds. Hence, diamonds and naturally occurring colored diamonds have been transformed into investments and financial hedging tools to prevent future financial crises.

Reasons Why Diamond is a Good Investment

  • Increases value over time: Irrespective of economic status, diamond has a steady increase in value since it is a precious and fine metal. Besides, diamond jewelry with a fine cut, well-crafted and beautiful design has a higher value than a naturally occurring stone.
  • Hold value well: Particular pieces of diamond jewelry hold more value than others; hence investing in these types of gems is quite profitable. For instance, investing in white and colored diamonds tends to have more value because of their rarity.
  • Certified: Like gold, diamond is certified to protect the gem’s value. For instance, diamond jewelry with a GIA certification ensures the stone remains valuable regardless of market players and rarity.
  • Marketable: Diamond has a higher resale value, whether it is a good or bad investment. Besides, diamond prices are often competitive because the stone is rare and in high demand. This makes it a good investment, especially gems with highly desired cuts.
  • Investment diversification: Investing in a collection of diamond jewelry diversifies the investment portfolio, preventing market fluctuations.

For more information about investing in diamonds, or if you are looking for the right piece of jewelry to invest in, contact us here at J. Vincent to learn more today!