In recent years, we’ve seen a spike in people taking an interest in their personal financial security. This can be something simple, such as consolidating a few bills or restructuring budgets, or it can be something a little more adventurous, like making an investment.
When it comes to investing, most people immediately think of things like stocks, shares and bonds. However, these aren’t the only options out there. Diamond jewelry can be a fantastic investment, you just need to know what you’re looking for and how to assess the quality of diamonds.
Why are Diamonds so Valuable?
Diamonds have been highly prized for hundreds, even thousands of years. These glittering stones have been the currency of kings and queens across generations, used to symbolize wealth, opulence and prosperity.
Today, diamonds are more widely available to normal people, they are no longer reserved for royalty and aristocracy. If you’re looking to buy diamond jewelry as a gift, for example, you can visit a store like Best Brilliance and find yourself an excellent deal.
Just why are diamonds so valuable? The first reason is their rarity. Mining diamonds takes time, effort and money, which increases the price of the final finished product. However, diamonds are not as rare as some other precious stones, so why are they regarded as the king of the jewelry world?
One of the most significant factors is their durability. Diamonds are extremely strong, and widely regarded as one of the toughest naturally occurring materials on the planet. This may seem strange when you look at them, their elegance and beauty doesn’t exactly convey a sense of strength, but they are famed for their robustness.
This makes them ideal for jewelry. They are able to withstand scratches, scrapes, bumps and impacts, keeping their brilliant shine and sparkle for many years, whether they are on a ring, a bracelet or a necklace.
Are Diamonds a Good Investment?
If you’re looking to secure your financial future, investing your money is always recommended. Doing so will protect your wealth and see it make a profit. However, you need to know what to invest in and how best to proceed if you want the process to work for you.
There are several reasons why diamonds are an excellent investment option. They are an established asset, internationally recognised and their value is generally very secure. They offer significant long-term growth opportunities too; you only need to look at historical price charts to see how much they have grown over the years.
Diamonds are also a practical investment. What other asset allows you to hold your entire portfolio in the palm of your hand? This means you can lock your diamonds away yourself, confident in the fact that your investment is safe. They offer a great deal of privacy too. Investing in diamonds does not require the divulging of personal information and there are no additional taxes associated with them.
How to Judge the Quality of a Diamond
As we have outlined above, diamonds can be a fantastic investment option. However, before you go out and buy some diamonds, you need to know how to properly evaluate the quality of a stone.
Diamonds are judged using four categories, known as the four Cs. These Cs are color, cut, clarity and carat.
Colour, as you might expect, refers to the color and visual appearance of a diamond. Colorless diamonds are regarded as the most valuable, while diamonds with yellow or brown tints are less valuable.
Next C stands for cut. This criterion is used to evaluate the quality of the finish. When assessing cut, the symmetry, geometry and details of the diamond are all taken into consideration.
Next is clarity, which assesses any imperfections, known as inclusions, that are present on a diamond. Clarity is measured on a scale which ranges from flawless (FL) to Inclusions 2 (I2). No diamond will ever be truly flawless, but diamonds with the smallest number of visible inclusions will be worth the most.
Finally, we have carat. This is a metric used to indicate the physical weight of a diamond. Diamonds with a higher carat are more valuable. To calculate carat, you have to subdivide one-fifth of a gram 100 times. This will give a total that indicates a diamond’s weight in carats, leaving you with a handy number by which to assess value.
Diamonds might not be the first thing that comes to mind when thinking about modern investment options. However, they have stood the test of time and have remained an incredibly popular choice for investors for hundreds of years. If you’re thinking of investing in diamonds, understanding why they are so valuable and how to judge stones is absolutely critical. Keep the four Cs in mind at all times and think about these factors when examining potential diamond investments.