AUTHOR: Cyril Bladier
TITLE: Buying Investment Diamonds
DATE: 6:28:00 PM
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BODY:
When it comes to terms of investment for gemstones, diamonds are perhaps one of the best. Since the depression, the trend for diamond prices is noticeably advancing upward as compared with gold, silver, copper and other commodities. As with any other investments, investing in diamonds also has weaknesses; it is therefore important to learn how to purchase investment diamonds.
I recommend that you go and visit Diamond Ring Brands To read all about the diamond brands.
We will not have a discussion of whether investing in diamonds is recommended or not. But we will point out some tips on how to yield the best results on your purchase of investment diamonds.
• The first best option is to buy from diamond wholesalers instead of retailers; as it is unlikely that you can purchase directly from the Diamond Trading Company (DTC), it is better to buy as close to it as possible.
• There are high quality diamonds like IF clarity and D color that seem to be a potential good investment in terms of dollar figures; but you will suffer from their low liquidity . Diamonds that fall within the H range for color, VS2 clarity and other low quality diamonds are generally easier to sell; to some extent, they mitigate the low liquidity of diamonds. Please note that diamonds are not good short term investments.
• Stones with carats that are greater than 1 usually make better investment diamonds. The importance of diamond carat is often overlooked when it comes to investment diamonds. When compared, a diamond with full 1.0 carat appreciates more in terms of price than a 0.98 carat diamond.
• Buy only diamonds that have grading reports from well recognized labs like GIA, IGI and AGS. These papers are your quality assurance; later on when you decide to cash in on the stones you can negotiate a good price for your investment diamonds.
• Another thing you should look into when investing in the stone is the type of diamond cut. The Princess cut diamond is increasingly getting popular therefore it is also getting more pricey; other types of cut that are going out of style are costing lower too. The Round Brilliant cut is most favored as an investment diamond because it has remained stable.
If diamonds have very high value per unit weight, they are the best investment diamonds. Undoubtedly, they are the most capable in storage and shipment. One good reason was the launching in 2009 of DODAQ (Dealers Organization for Diamond Automated Quotes) for polished diamonds by Dutch Bank ABN Amro. Lack of terminal market is one of the major issues of the diamond industry, and DODAQ has solved it. The announcement of the DeBeers that they are scaling down on production due to the increase in more new diamond mines coming online may cause a potential increase in the diamond prices. Thus, the best time for learning how to properly invest in diamonds is now.
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