Mummy says….Did you know something astounding happened earlier this year? The Pink Star diamond sold for $ 71.2 million, making it the world’s most expensive gemstone. Sold by Sotheby’s, this stone was bought by jeweller Chow Tai Fook in Hong Kong.
There isn’t a time in modern human history when precious metals such as gold and stones such as diamonds were not seen as an investment. This says a lot about the popularity of diamonds and what they mean to people. We are told that diamonds are a girl’s best friend. We think an engagement is incomplete without a diamond ring.. We believe in the sparkle and power of the diamond and how it makes us feel.
Whether as a ring, or a row of sparkling stones in a necklace or bracelet, or even as a tiara, diamonds lend themselves to every possible situation. They change a casual setting to sublime, they create elegance and timelessness. They can be as trendy or as classic as you want them to be. What they also are is a great investment. Yes, ‘investment’ is not as romantic as ‘engagement,’ but it makes so much sense. Diamonds are hence considered a sound investment.
When you think of the future and wanting to do the very best you can for your child, then investing in a diamond starts making even more sense.
The four Cs in the diamond are important wen choosing one:
What makes a diamond such a good investment? Aesthetics should have something to do with it.
There’s no doubt that a diamond is beautiful. When it comes to clarity, a diamond with little or no
flaws is something that shines with an inner luminescence. When it’s cut well, each facet catches the
light and reflects it, making it even more vibrant.
Color is important when it comes to investment. While the colorless diamond is highly coveted, its
value stays the same. The coloured stone on the other hand, appreciates in value as time passes. So a grey diamond may not shine as bright, but its value will be higher.
Diamonds are also easy to move around. It might cost as much as a few bars of gold but the stone is much smaller and this makes it convenient to carry it around.
The price of diamonds tends to appreciate 7 or 8 percent each year, sometimes going up to 12%.
What’s more, unlike other precious commodities, gold for instance, the diamond price is not too volatile. A diamond may not cost the earth, but when you get to selling it, you should get a pretty good return on your initial investment.
PIN FOR LATER
Do keep the following points in mind if you’re investing in diamonds:
1. The stone should be certified by a reputed organisation. This certification is vital if you plan to resell the diamond. The certification will tell the buyer what the price was and then decide on its present day value.
2. A diamond in its raw form has more value. That’s because during retail, the stone is marked up and so, you’ll end up paying for more than you’ll perhaps get when you resell.
3. Liquidity. Is the diamond capable of being sold and does it lend itself to any kind of setting and piece? If it can be, you’ll find more ready and willing buyers.
4. A diamond that’s large in size, colourless and comes with great lineage has a much better chance of being resold. This kind of purchase makes for a good investment.
5. It is not only diamonds you can invest in. Invest in the stocks of jewelry sellers and mining companies and you can make some money there too. Not all companies are listed on the stock exchange, which makes investing in them difficult! But the ones that are, are good bets.
6. Use a diamond exchange like DIAMDAX (a collaboration of DODAQ and Antwerp World
Diamond Centre) to help you understand the actual transaction price of your stone. On its trading platform, you can be assured of anonymity and honesty.
Buying diamonds as an investment makes sense because of the constant desire for the stone. What’s more new trends in the diamond world are making it even more lucrative. For example, China is in the middle of a diamond engagement ring explosion. The idea of the traditional wedding route is changing and as it does, there is more demand for the diamond.
Do be realistic about your diamond. Just because it’s a diamond and has a nice colour, doesn’t mean
that it automatically becomes a good investment. A small stone does not have very high resale value. It may be sentimental to you but you need to see it from the buyer’s point of view. The larger the diamond, the higher the value.
Invest early, be willing to spend money and then wait for your investment to grow. Have you ever thought about investing in diamonds for your child’s future?