“Diamonds Are a Girl’s Best Friend” sang Marilyn Monroe in the 1953 movie “Gentlemen Prefer Blondes”. But are diamonds a good investment too?
In times of economic crises, physical commodities such as diamonds and gold always increase in value and are inflation proof. Despite their high value, diamonds are very small so you don’t need much space to keep even thousands of Euros. Diamonds are also very durable as they are one of the hardest things you will find on earth. And here comes the best part: it is an investment that you can wear and enjoy your sparkling rock as much as you want as they do not wear off!
So what should you know before buying a diamond? There are a few attributes that will define the price of your diamond. The Gemological Institute of America classifies the diamonds according to these attributes known as the 4Cs:
Carat, Clarity, Color, and Cut.
Carat is how we measure a stone; one carat is equivalent to 0.2 grams.
All Diamonds have tiny inclusions, usually invisible to the naked-eye. You will need a 10x magnification and preferably a trained gemologist to classify your stone. The fewer inclusions, the better the diamond. The G.I.A. Clarity Scale has 11 different grades that go from Flawless to Included.
You can find diamonds in all colors and a really colorless diamond is very rare and valuable. The G.I.A. Color Scale ranges from D (colorless) to Z (light yellow).
There are diamonds cut in different shapes but the most common is the standard round brilliant. The better the diamond is cut, the most your stone will reflect the light and shine and be more valuable. The G.I.A. Cut Scale for round brilliant cut ranges from Excellent to Poor.
A diamond that has an even pattern of dark and bright areas will be in the top category of the 4Cs determinants.
You can buy diamonds online but make sure to buy only certified diamonds. For investment purposes, it’s a good thing to have your diamond appraised by a qualified person to get an independent grading report. This will help you when selling your diamond. Also, have it insured!
You can find a reliable retailer near you on GIA, a public benefit, nonprofit institute, and the world’s foremost authority on diamonds, colored stones, and pearls.