Diamonds For Ornamentation As Well As For Investment

Gone are the days when people would say that diamonds are the best friends of women  and the worst enemies of men. Nowadays, diamonds are not meant to merely satiate the desires of narcissistic women, but also to bring business profits. Remove that myth that diamonds can be owned by the rich and the famous alone.  I am passionate about precious stones and have managed to buy about 3 or 4 diamonds and gems from my savings. Even if you don’t have savings, you can always take loans from a lot of lending agencies. In the current economic situations when most businessmen seem to be struggling like toddlers desperately trying to do keep themselves from falling, diamonds with their almost-steady worth seem to be a lucrative investment option. But there are some problems with the feasibility of investment in diamonds. If you think that your pros score more over your cons then go ahead, buy those sparkling stones.

Who is the ideal investor?

Though I say that I could buy some diamonds, they cost me a fortune. But that was for a personal purpose. If you want to trade diamonds, you should have huge investment at your disposal. If you are just comfortable with your income in the present recession times and wanting to make some big money, just forget the idea because due to various reasons you might just put your money at stake at a time when you don’t have a dime to waste.

Only those who’ve got adequate money to spare are the ones who can take the risk of investment and patiently wait for profits. 1 carat of a premium cut diamond will cost you anything between $15,000 to $ 26,000. Use the diamond calculators of Diafon and Ajediam to find out the price of a diamond today.

Why should I invest in diamonds?

In the recession period, when the prices of so many things seem to fall rapidly; diamond, gold and other valuable stones and metals seem to have gained importance for their intrinsic values. The value of diamond is not dependant on the stock market prices. So today if I want to buy that sparkling rare piece, I’ll have to pay the same high price, even though the current economic times of recession have rendered me poor. Another major advantage is that to start trading in diamond, you don’t need a huge space to keep the product. Just your small wallet can hold diamonds worth billions of dollars. Also portability is a major advantage. The icing on the cake is the property tax exemption on diamonds. Diamond is an important source of liquidity.

The value of diamonds is not determined by ‘fiat currency”. The value of extremely precious commodities is independent of government laws and that’s why they have retained their values even during recession. In recent years the demand for diamonds has gone up but the supply seems to be less. Now, this is a highly favorable point to think about investing in diamonds from the business perspective. Polished diamonds seem to be the rarest and most valued of all diamonds and you should try to invest in those.

It’s always better that you buy diamonds from wholesale vendors and not from that posh diamond retail outlet in the best jewelry mall of the city because the latter’s going to suck money out of you till the last drop.  Also, buy only GIA and EGL USA certified diamonds.

You can take the help of diamond funds in making investments as they buy high quality diamonds and market your diamond aggressively. But you’ve got to have quite a lot of money to make investments in them.

Why should I NOT invest in diamonds?

As there are good reasons for investing, there are not so good reasons for you to consider your temptation of making investments in these priceless stones of rare beauty.

Though there might seem to be industry hype in viewing diamonds for investment, there are some problems that you should prepare yourself to overcome if you’re really interested in investing in them. First of all, you might buy a precious stone, but do you think you can sell it off that easily. The number of customers for real diamonds is still less even though it has gone up in recent years. Forget about people wanting to buy diamonds in the recession period. The majority of us still don’t fall within the income range for investing in diamonds.

When finding a large number of customers on retail is not quite common, you are left with the option of selling it back to a wholesale dealer who will buy it only at less than market price values. So there, you’re not making any profit. Sometimes, you might have to sell it at a loss when you’re in need of money.

In 1990s the Jewelers Vigilance Committee has reported a lot of fraudulency in the diamond business. Fake diamonds are sold for the price of real. It’s difficult to make out the true value of a diamond unless you’ve got a trained eye, which most of us don’t. Investment grade diamonds are being offered by some firms, but if you are wise enough you should always take it on written agreement that they’ll take them back if nobody buys them. White diamonds are pure and rare. Colored diamonds with breathtaking hues of sapphire, blue, green, yellow and pink are rarer still and beyond the fiscal reach of most common men. On a rarity measure, customers would want to purchase colored diamonds more than the white ones. So, if you want5 to invest, invest in a colored diamond, but that might cost you a fortune.

How do I determine the worth of a diamond?

Determining the worth of a diamond is difficult if you don’t have a trained eye. I would always take an expert with me for making diamond purchases. The 4Cs, namely Cut, Clarity, Color and Carats determine the value of a diamond. The cut refers to the differently angled faces of the diamond. The superior the cut, the more brilliant the stone will be as the reflection of light is dependent on these surfaces. Higher the purity, greater is the clarity of the diamond. Pure diamonds don’t have any other molecules in their crystal lattice structure and let light rays to pass through completely enabling enthralling brilliance to the stone. Colored diamonds are costlier than white as they are rarer. Synthetic diamonds are cost much less than natural diamonds. You can buy them from any certified manufacturer.