Diamond as an Investment Tool

When the diamond is so desirable that it reminds women of her femininity, diamond shopping has also increased. People even started to invest in diamonds. In this article, I will answer the question “Can diamond be an investment tool?” for you.

Experts stated that they often encounter diamond customers who come with questions in their minds and emphasized that every customer wants to know whether diamonds are preferred as an investment tool especially for making special moments more special. They also added that despite the increase in the price and the difference in trading of the diamond, which can be purchased and sold with a certificate, it can now be used instead of gold, which has been put under the pillow for centuries and considered as an investment tool.

Diamonds, which express love perfectly with its sparkle and immortality, have changed our habits and became the main witness in important moments in our lives. Especially with the effect of the advertising, promotion, and campaigns of the diamond companies, the purchase of diamonds on special occasions such as weddings, wedding anniversaries, marriage proposals, birthdays and Valentine’s Day has become more common than in the past.

Other factors in the preference of diamond jewelry instead of gold jewelry are the reasons such as the distrust caused by the sudden changes in the gold prices in recent years and the fact that the diamond never decreases in price as opposed to precious metals.

Experts who underlined that the company official should state that the diamond which is already sold will be reduced to what percentage when it is returned at the sales stage in the case of the diamond company is a reliable institution emphasized that the loss equals just the workmanship value as it is for gold jewelry. Especially for those who started to look at diamonds as an investment tool like silver, they suggested that large diamonds such as solitaire rings and 3 – 5 rows of diamond rings should be preferred and thus the losses should be minimized.

Investing in Diamonds

Any activity that meets the needs of the individual is a subject of the economy. In addition, the savings, investment, shopping and barter system are the sub-headings of the economy. Although the materialist part of the business is mentioned, it does not always have to be money. Although it shifts more to the emotional dimension, we can easily count some of the values ​​that satisfy people spiritually in the economy. Because in the end, regardless of the content or the price paid, the aim is to create a system for the quality of life, joy, and need of life. For this purpose, it would not be right to call diamonds, which have high material value but also are quite nonreturnable, a tool that makes you lose money. We need to know some details to explain whether buying diamonds is a profitable shopping or not, leaving aside the spiritual aspect of the business and focusing only on the material aspect.

Diamond is jewelry in which craftsmanship is used more than standard gold jewelry. Therefore, quality workmanship ensures you always receive a positive return in material terms. The rare features of this precious mine, which is found in nature as diamonds and turned into jewelry in skilled hands, are among the necessary and sufficient reasons for it to be a valuable accessory. For this, there should be a quality cut as well as the carbon crystals in the stone should be minimum, so the clarity always keeps the value of the stone high.

No matter how glamorous the diamond models are, you should never buy accessories that are not certified. Therefore, even after years of shopping from a company that you are sure of its name and quality, the value of the product you receive will not decrease and even this value will increase continuously. Diamond prices have their own markets just like gold, silver, and other mines. Therefore, you can follow the fluctuations in the market in order to sell your diamond jewelry you want to remove without losing its value.

All Valuable But Some More

Diamond prices vary depending on the properties of the diamond in both the purchase and disposal stages. In fact, each item of this property known as the 4C rule is directly proportional to the rarity of the diamond. Carat, color, cut, and clarity of the stones examined separately in this list. If they get the highest score and therefore they are rare, so to say that they become very valuable. To get the answer to the question of whether the diamond will make you lose money, let’s look at the highest level of stone according to the 4C rule.

Carat is a unit of measure and is used to express the weight of the stone. With this mass unit equal to 200 mg, the weight of the diamond is determined and the value of the stone is calculated. Let us add that the largest diamond ever found in the world is the 545.67 carat stone called The Golden Jubilee.

Color is also an important factor in the quality of the diamond. The color of the diamonds varies from transparent white to light yellow. Therefore, we can say that the diamonds, which are grouped with letters and considered as the most valuable, are colorless stones in the D-F range.

Another classification used to evaluate the stone relates to the cut. Craftsmanship is of great importance for the cutting which affects the aesthetic appearance and also changes the reflection capacity of the diamond.

Finally, the answer to the question of whether the diamond makes you lose money can also vary depending on the clarity. The highest level of clarity is that no spot is observed on the stone content.

Does Diamond Investment Cause You Make a Loss?

Diamonds are among the most valuable minerals found in nature and have been preserved for hundreds of years. Since it is a bit more difficult and demanding job than other precious minerals, you get the value you want to sell your diamond according to the quality and workmanship of the stone. Therefore, the most important feature you should pay attention to is the quality of workmanship, color, and clarity of the diamond. Diamonds, which cannot be processed with proper workmanship, cannot seem as beautiful as it can, which is its main function, as required. Thus, it takes its place in the market at a price well below its value. If you know the quality of your diamond in consideration of craftsmanship, it will be useful to you to avoid any loss both when buying and selling your diamond.

For example, using a facet of 57 diamonds will be sold more expensive than the raw state of diamonds. The customization of diamonds can lead to changes in the value of your diamond during the trading phase. You should think carefully before selling or buying your diamond. If it is purchased to make a profit, choosing a properly crafted and round cut diamond type will be the biggest step to avoid damage. In the worst-case since its sale is more, you can sell quickly and with less damage.

Another point to be considered is the manufacturer. If you choose a manufacturer that sells the product with a low-profit margin, you can buy and sell your diamonds without a loss. The most important thing that will benefit greatly in order to avoid losing money in diamond trade is to choose the diamonds with high color quality that you can easily sell when you try to sell them. When buying diamonds, it is also one of the safest ways to ask for a warranty from the seller. Since diamonds are generally seen as jewelry material, they will only be asked for their value. Thus, crafting will have no importance. In fact, a well-crafted and clean diamond which is used for a long time does not cause you to lose money. It is at your expense to show a diamond to a seller who only appraises your diamond according to the stone.

When you buy your jewelry, you can cash it in the place where you buy it with assurance or by taking a price from a few jewelry dealers where you can get the best price. It would be the correct move not to buy diamonds from a jeweler who sells bracelets, gold rings, etc. Because these sellers do not have any information about diamond stones, it is impossible for them to determine the correct stone quality and make pricing when buying or selling to you. You can also sell your diamonds via the internet. The person who will buy your diamond will see your diamond directly on the internet. And since he/she will buy your product willingly, you can convert it to money at the price you have determined without making a loss. The most important feature to be considered in this method is whether the contact person is a fraudster. For this, you need to pay attention to shopping in safe places.

Another thing you can do is to have information about the diamond market. You can get big profits through your diamonds by closely examining the movements in the diamond market and the current events affecting your jewelry. For example, the depreciation of precious metals in the stock market will cause prices to fall. So instead of selling your jewelry, you can buy diamonds with good workmanship but low value. This is the biggest factor that will make you profit in the future. At a later time, the price of your jewelry will be higher than the value you paid due to another situation affecting the market.

In such a case, selling your diamonds and making a profit will be the most effective and profitable method for you. It is generally impossible to make a loss with diamonds. Since it is always a valued stone, it can be considered as one of the biggest investment tools. By following our rules, a diamond trade will ensure you make a considerable amount of profit. So you should investigate the craftsmanship of the diamond you will buy or sell, work with a contracted place and monitor the markets continuously. By closely monitoring the value of your diamond you will have made profitable investments. This way you will not make any loss. And you will always keep your jewelry safely as a profitable investment.

Diamond Instead of Gold

Despite the gold has been being put under the pillow as the safest investment tool for centuries, diamonds which are generally used for jewelry purposes also turned into investment tools. Due to the rise in gold prices, consumers began to look at diamonds as an investment tool. Despite the increase in the price of diamonds, which can be purchased and sold as bare stones or certified, it attracts great interest from consumers for investment purposes as well as being used as jewelry. The New York-based International Jewelers Association said in a statement that a two-fold increase in a very short period of time had a significant impact on the markets and gold sales in the world and that the sale of diamonds has also been increased.

Experts said that despite the price increase around 50 percent, there was a significant increase in diamond sales compared to the past months and years, and it was much more common to get diamonds on weddings, wedding anniversaries and Valentine’s Day than in the past, and that the effect of advertising, promotion, and campaigns was found to be responsible from this. Experts point out that diamonds are seen not only as jewelry but also as an investment tool, especially in the last year due to the increase in world diamond prices by the people who buy diamonds. The increase in diamonds makes them more attractive, they say.

Experts expressed that the saleability of diamond or jewelry made of gemstones is one of the indicators of the country’s development and added: “The more developed and integrated the country is, the more integrated it will be with their tastes and choices. 20-30 years ago, a woman perceived the 10-15 gold bracelets she wore on her arm as jewelry and enjoyed her. But nowadays, the ladies are elegant, they prefer diamonds, precious stones or suchlike. The most important factor in the purchase of diamond stone products is a combination of elegance and value. If needed, diamond products can also be sold back or changed with a certain loss.”

Savaş Ateş

My wife has a huge interest in diamonds. After she asked me a lot of questions about it, I found myself in diamonds. I made a lot of research on it. I read books. I visited manufacturers. I visited the stores. I have made good friends in that field. I want to share my experiences with you.

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