A Diamond is Forever, and in Terms of Investment Value, Will Always Last

The phenomenon and lust of a diamond has stood the test of time. Diamonds were once believed to possess special healing and mystical qualities, and in 1477 a tradition was born when Archduke Maximillian of Austria gave Mary of Burgundy the first diamond engagement ring.  Countless references in every aspect of modern culture engrain the tradition even more, ensuring that the popularity will never falter.

Hence, in this sense, it is reasonable to suggest that any purchase of a diamond is an investment. However, in terms of profit and business investment, it is much more specific. If the outcome of the investment of the diamond is set on millions of profit, such as stones that are seen auctioned at legendary Christie’s, for example, then size and quality does matter. Taking into account the Four C’s (for more information, please see our Diamond Buying Guide) is the most important factor as the rarer the diamond, the more sought-after and the more it is going to be worth in monetary value. D-coloured and Internally Flawless stones of a significant carat weight are going to be the money-makers. Fancy coloured diamonds such as Canary diamonds and pink diamonds will also be valuable, due to their rare beauty.

Most diamond-buyers, however, may only ever buy one diamond. Even though it may not end up in Christie’s one day, the purchase can still be an investment. If the intention for the stone is to one day be worth some intrinsic value, the specifics of the Four C’s are also important. The colour and the clarity of the diamond should be high enough to ensure interest in years to come. The suggested colours when purchasing a diamond are the top end of the grading scale D-F. Similarly, regarding the clarity, IF-VVS2 graded will be of the most sought after stones.  Round brilliant cut diamonds still reign as the most popular shape of diamond, and therefore can be branded as the most re-sellable diamonds. Ideally, it is recommended that the carat size of the diamond should be over 0.50 carats for any inherent value, in terms of size, to be made.

Furthermore, the certification of the stone is always important when looking to buy, and ultimately one day, sell a diamond. Buying a diamond with a respected and World-renowned certificate, such as GIA, for example, will make a better investment than a stone with no known origin. Moreover, the uncertainty of conflict diamonds is a risk to big to take, not only for investment purposes but also for moral purposes. Conflict diamonds should never knowingly be bought and sold, and so uncertified diamonds should never be able to be of‘re-sellable’ worth.

If intrinsic and monetary value is not key in your purchase, then the most important factor is the investment it will have in your life. Worth more than just their monetary value, jewellery, in particular diamond jewellery, and single stones become precious heirlooms, marking them milestones in a person’s life.