That is a very good question when talking about diamonds, and you are the only one who can answer it.
You must determine whether you’re purchasing a diamond for financial or sentimental reasons. There are always two sides to every coin, and pros and cons to investing in any raw materials.
Do They Retain Their Value
Diamond values have increased steadily over the past twenty years, and they seem to be retaining their worth.
However, we all know that the market can fluctuate widely, so it is not a certainty that your investment is 100% secure.
On the other hand, if you are looking for a special gift that symbolizes everlasting love and devotion, there is nothing like a diamond.
Diamonds tend to inflame passion, and have long been a powerful symbol of love and romance, this is why the Diamond Engagement Ring is a very popular token of love.
Facts To Consider When Buying Diamonds
There are many factors to be considered when thinking about investing in diamonds. If investing through the market exchange, you need to consider inflation, as most commodities usually increase in price around the rate of inflation.
Diamonds vary in weight, color, clarity, shape, proportions and various other ways. This makes them non-homogeneous, and so is not likely to be considered a great commodity investment.
You also have to consider the efficiency of the market, meaning can you buy and sell the diamonds at low buy-sell spreads in any quantity. You should also be aware of sales tax, the markup rate, and interest and security costs.
Also, is there an individual demand for diamonds and individual jewelry exclusiveness, and are they certified.
Fashion And Trends Can Effect A Diamonds Price
The fashion scene can also dictate or influence the demand on diamonds. If there is a high demand the price can increase. This provides the opportunity to create a profit from investing in diamonds. If the diamonds of top quality, there would be great potential in the market for profit.
If you are considering investing in diamonds, you would be wise to research the market thoroughly so that you know what you are getting into. All investments carry a risk. You have to decide if the time is right for an investment opportunity. You’ll also need to be patient and wait for the right opportunity to resell the diamond at a profit
DeBeers Central Selling Organization handles around 30-40% of the total production of diamonds, but some experts put that number closer to 60%. They actively discourage investing in diamonds, especially with the vast array of fraudulent investment companies that have popped up over the years.
Now that you have all these factors about diamonds, it is time to consider whether it is a good idea to invest or not to invest.