Before you make any important investment, you often learn about the investment products, ask questions, and understand how the investment will suit your needs and your wants. Likewise, when you decide to invest in diamonds, it is imperative that you become familiar with inner secrets and skills of the trade, and understand how the diamond trading market works at our diamond investment consultations. To become a wise and knowledgeable diamond investor, following the steps below.
he yield of returns for diamond investment is dependent on the investment’s duration, quality and type. A good way to start is to learn the “4Cs” is to spend time with an expert or specialist in diamonds investment. You can further advance your knowledge with other factors of grading a diamond, such as its purity, cutting proportions, make, treatments, transparency, which are crucial value affecting factors.
Keep abreast of the market’s current demands every so often to assess the value of your diamond portfolio while keeping in mind that diamonds’ value generally tend to rise over longer periods of time. In times of hyperinflation, some diamonds’ values can double or triple in half a year.
Novelty and fashionable cuts are seasonal in popularity, your best bet to choosing an investable diamond is the ultimate, classic 57 or 58 faceted round brilliant cut diamond which is always in demand.Their rate of price increase is steeper and speedier than other shapes of diamonds. In auctions and in the trade, round diamonds always have more prevailing price valuations. When proceeding with diamond investment, always choose the diamond which you can resell in the future. In particular, avoid any old cuts for higher chance of fast liquidity.
Fancy colour diamond is everyone’s desire, but not commonly affordable. It is much more arduous to find a serious buyer for a large and rare intense vivid pink diamond of 10 carats, than to locate a buyer for a 3 carats D colour, internally flawless diamond. For novice in diamonds, go for a colourless diamond with good colour grade to secure your investment in both short and long run.
It is better to buy a diamond first and set it onto jewellery later. Not only can you benefit from the freedom of a custom design that suits your particular taste and style, but buying diamonds that have already been set onto some kinds of mount may obstruct your thorough view of the diamond during inspection. When selecting a diamond, make sure you look at the unmounted diamond using a 10 times magnification loupe in a properly lit room.
The pricing of diamonds isnot as mysterious as in the old days. The world’s diamond community utilizes the Rapaport Diamond Report as a channel to buy and sell diamonds at unanimously preset prices. Retail shops sell average and below trade quality goods with additional mark-ups from 75 to 200 percent so to gain a high profit margin from consumers to sustain their rental, overhead, overstock and competition costs. To maximize your investment returns, always buy premium quality diamonds at trade values. Buying diamonds at retail price will only eat into your investment capital.