The question is are diamonds a good investment? The answer depends on a few factors. The truth is that for the last twenty years these stones have increased in value and are expected to continue into the future. Now keep in mind, there is a difference between finished jewelry value and the value of precious metals and stones. Purchase stones based on their own value and not the gold, silver, setting. Repurchase will mean price according to weight.
Carat - pay attention to carat weight. This is one time when size does indeed matter. Diamond chips and very tiny stones may be quite lovely, but they will not increase a great deal in value. More carats means a bigger diamond. It potentially means greater value as well.
Most people remark at the prism effect seen when holding a good stone in the light. This is clarity. More clarity allows a brighter stone with more "bling". Less brightness, or even a dull appearance indicates inclusions. These are small flaws that make the piece less sparkly, and less valuable.
Diamonds are available in more colors than the traditional clear, sparkly, "ice" most of us are familiar with. The most expensive stone in the world, the "Hope diamond" is a great example; It is blue. Just be careful of those attempting to pass off a flawed stone as a "special" color. Even yellow should be bright and sparkly. Obviously, gray is a very poor choice.
Although cut is not as important as the other features of a diamond, try to stick with a traditional cut when considering resale value. Round and princess cut seem to be good choices, as they tend to be the most popular.
When people wonder "are diamonds a good investment?" they will now know how to purchase those that are most likely to return a decent profit. Just remember the four rules - Carat, Clarity, Color, and Cut.
Carat - pay attention to carat weight. This is one time when size does indeed matter. Diamond chips and very tiny stones may be quite lovely, but they will not increase a great deal in value. More carats means a bigger diamond. It potentially means greater value as well.
Most people remark at the prism effect seen when holding a good stone in the light. This is clarity. More clarity allows a brighter stone with more "bling". Less brightness, or even a dull appearance indicates inclusions. These are small flaws that make the piece less sparkly, and less valuable.
Diamonds are available in more colors than the traditional clear, sparkly, "ice" most of us are familiar with. The most expensive stone in the world, the "Hope diamond" is a great example; It is blue. Just be careful of those attempting to pass off a flawed stone as a "special" color. Even yellow should be bright and sparkly. Obviously, gray is a very poor choice.
Although cut is not as important as the other features of a diamond, try to stick with a traditional cut when considering resale value. Round and princess cut seem to be good choices, as they tend to be the most popular.
When people wonder "are diamonds a good investment?" they will now know how to purchase those that are most likely to return a decent profit. Just remember the four rules - Carat, Clarity, Color, and Cut.
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