AUGUST 5, 2023

What to know before investing in diamonds

The world has been fascinated with diamonds since we can remember. From heirlooms to showstoppers, diamonds can be many things but what they’ve always been are unrivalled motifs of beauty, love and luxury. From a financial aspect, many have begun to view this precious stone as an investment tool in today’s economy. Experts and industry players have seen significant appreciation in diamond prices, pegging it as one of the strongest investment options today, which can help create a steady and rewarding portfolio. Here’s why you should consider investing in natural diamonds —

Diamonds are excellent low-volatility instruments

From fiscal downturns to economic events, from wars to technological progress, diamonds have stood the test of time. As a result, their purchase, and more importantly, resale prices do not fluctuate as much as other metals and gems. This helps diamonds retain their value significantly, even over long periods of time. They are also a global currency, allowing purchase and sale without any drastic fluctuation all over the world.

Dependable durability

The diamond ranks the highest on the Mohs scale of gemstone hardness. In other words, it is the hardest gem known to mankind. Extremely durable, diamonds can withstand rough environments, making them an ideal choice for investors looking for physical investment options. With just minimal care, they can last a lifetime without their brilliance getting compromised; irrespective of whether they are loose or set in jewellery.

Rarity

Diamonds with the rarest, highest grades command esteemed prices in the global market. While the 4Cs - carat, colour, clarity, and cut – define the rarity of diamonds as per gemologists, diamonds with unique features have built a market for themselves globally. Highly prized but not considered as frequently, diamonds have great investment potential, something that has only improved over time.

Size and portability

As a tangible asset that one can wear, see and hold, diamonds offer a sense of security to the buyer. Their size and weight make them easy to store and transport. Large investments can be tucked safely into tiny spaces, making diamonds easy to store and move.

Investing in Diamonds 101:

  • Know the basics to create the right portfolio for yourself. If you are a novice in the world of solitaires, it would be worthwhile to decode the 4Cs, prioritize your budget and narrow down your preferences.

  • Always opt for certified diamonds that have been subject to formal laboratory evaluation and grading.

  • Invest in loose diamonds or set them in jewellery — this is entirely dependent on your personal preferences. Whether you wish to flaunt your diamonds in a statement necklace or keep them safely in a storage space, it’s all up to you.

  • While colour and clarity are very important in assessing the diamond, people often undermine the role of cut and fluorescence. The ideal choice for investment is triple excellent-cut diamonds with no fluorescence. Diamond fluorescence severely affects the appearance of the diamond under most lighting conditions and strongly fluorescing diamonds may even appear hazy or cloudy.

At KDZ & Co., we bring our expertise of more than a century to ensure our diamonds are of the highest quality. We use only triple excellent-cut, colourless and flawless diamonds in our jewellery, but that’s not all that there is. Each stone is personally handpicked by a member of the KDZ and Co. family before it is set in jewellery.

Seeking expert advice while exploring investment options is always helpful. KDZ and Co. offers tailored advice from seasoned professionals, which can help you make an informed choice. Schedule a visit to our store to know more about our diamond collection and how they can become a part of your portfolio and your future.