Brilliant as an investment- Loose Diamond

Posted by Luminus Diamond on April 30th, 2019

In our time, which is not very stable from the point of view of economics, the question of what to invest free cash flows is becoming ever more urgent.

One of the tools for effective investment is considered diamonds. And for some reason.

First of all, it is not a renewable natural resource. It is believed that at current loose diamonds production rates (of which diamonds are subsequently obtained) their deposits will run out in about 20 years, therefore, in the future, the situation of demand over diamond supply is very likely. In addition, a very high cost can be concentrated in a small diamond. In addition, these gems are unpretentious in terms of storage and transportation, which, of course, is an advantage in case of unforeseen circumstances and natural disasters.

However, despite all the above arguments, there are nuances in diamond investments. The largest investment attractiveness is represented by large diamonds weighing more than 1 carat. They show a good yield. However, it would be not be correct to think that the larger the stone, the greater the increase in value it is able to demonstrate. Diamonds of 5-10 carats are, of course, unique pieces. They really can show a fairly high yield, but they are more suitable for saving money than for their multiplication since the demand for radiant cut loose diamond is much more modest than for “carateers. This is primarily due to their inaccessibility and high price per carat.

Weight is only one of the conditions for successful diamond investment. The cost of the stone is also affected by color, clarity, and cut. Depending on these characteristics, the difference in price may vary by up to 20%. It is considered that only stones with the color D, E, F, and G make sense to buy, and the purity should not be lower than VS2 (only with very small inclusions). With these parameters, the color of the diamond does not give to yellowness, and the inclusions do not contain graphite. As for the form, the palm in terms of value here belongs to the traditional round brilliant cut. If all its parameters are clearly observed, the play of light on the edges of the gemstone will be maximal.

As a rule, all information about the characteristics of a radiant cut loose diamondcan be found in the certificate, which is a kind of product passport confirming its quality. It is very risky to acquire a gem whose characteristics are not documented. At the same moment, it is necessary to give preference to diamonds that are certified by the world's leading laboratories (for example, GIA, HRD or EGL), which are recognized experts in the field of evaluation of these gemstones.

Unfortunately, loose diamonds’prices also fluctuate. Pricing, above all, depends on the main market players who can reduce or, on the contrary, increase the supply of raw materials to maintain a balance of supply and demand. Therefore, the most significant dividends that you can count on by investing in this gem are those inexpressible emotions that you experience when you see a dazzling diamond on a finger. And this, you see, is the best investment.