India’s commodity investment runs on gold; specifically,
yellow gold. For generations, every Indian household turned to gold jewellery,
bars, and gold coins to safeguard their hard-earned money. However, such a scenario
is now taking a turn for good. Investors (customers) are gradually looking out
for other investment options that are not necessarily gold; the diamond
jewellery/loose stone makes an entrance here as people begin to invest in a diamond.
As the jewellery market evolved and customers searched for
variety, diamond commodity became a huge hit among the investors. They are
putting their money on buying either loose diamond rocks or brilliant diamond jewellery
with the hopes of locking their monetary funds in precious accessories rather
than a bank account.
But many customers are still far away from reaping the
benefits of diamond investment as they do not possess the essential knowledge
about investing in a diamond. This guide aims at driving away such
queries/doubts and help people become experts at diamond investment.
In short, the answer is yes. Diamond does make for a good
investment opportunity. However, there are always pros and cons of purchasing a
precious stone jewellery item for investment purpose.
The long answer to the question is to weigh in the pros and
cons listed below and make a decision about investing in diamonds. If, for you,
the pros outweigh the cons, by all means, go ahead and start your diamond
Diamonds are physical commodities available easily in any
jewellery retailer shop, offline or online. But irrespective of the purchasing
location, there are a few basic guidelines you must follow:
If you have gone through any of Melorra’s
guide on diamond jewellery, you would know what we’re talking about.
Start with the fundamentals of diamond
accessories, such as 4Cs of diamonds, their anatomy, and how to choose diamond
jewellery. The simple understanding of these concepts will help you in further
An intact budget will help you to narrow down
your choices when you go shopping for a diamond necklace for investment
purposes. Or instead of a strict budget, you can form a budget range to keep a
few of your options open.
Suppose your budget is Rs. 50,000, then you
don’t need to purchase only one pair of diamond bangles with them. You can
split your account and buy diamond accessories more than once.
With the basics and budget in mind, the
next step is to research about the trusted jewellery retailers and compare
their prices and customer policies. We’ve covered all the aspects of shopping
diamond online along with how Melorra is the best jewellery partner for you.
The resell value of a rare and desired
diamond accessory is likely to be higher than the one that is common in the
market. When you go to purchase a diamond ring, you can pick out the rare
diamond cut of high clarity that fits in your budget to reap a good return
If you’re buying diamond jewellery, the
setting is usually expected to be of gold, platinum, or silver. In such cases,
you need to carefully look at the diamond’s 4Cs and match which setting goes
with what cut and clarity of the diamond. Moreover, as the resell value of the
diamond jewellery would also consist of the jewellery setting, it is smart to
look into the mountings as much the diamond stones.
A diamond is as original as its
certificate. Do not trust the words; always ask for diamond certificates issued
by the proper authorities. The certificate includes all the necessary and
important details of the diamond, which when changed even a little bit account
to tremendous change in the price.
There is nothing called a stupid question. If
you have a doubt, then don’t shy away from putting in from your jewellery
dealer. Ask all the questions you have or can think of before putting your
money in a diamond investment.
When investment opportunity strikes, the purchase of diamond
either in jewellery or as loose plays a huge role.
The resell value of a diamond is devoid of its setting. You
can either sell your diamond jewellery as a whole or just the stone. But while
buying the diamond, it depends entirely on your need. Diamond jewellery does
have a resell value, and you can also wear it. A diamond also has a resell
value, but it’ll just be kept locked up in your jewellery box. Hence, all at
all these factors before deciding on buying a diamond as an investment
Every investment comes with its fair share of benefits and
risks. Go through listed options here and think about how it would affect your
choice to invest in a diamond.
· Diamonds are commodities and not stocks; they
remain inflation proof for a longer duration of time.
· A diamond stone is durable, tough, and doesn’t
wear-off easy. They can withstand the pressure of time if you don’t lose them.
· In the past few years, demand for diamond stones
and jewellery is growing among middle-class people, which is likely to double
and triple the sale of the diamond.
· Rare and unconventional diamond stones and their
jewellery also make up for a good collection. They not only retain their value
over time but also add a bit of vintage and antique price to themselves.
· There is a lack of price transparency. Unlike
gold price and silver, diamonds do not have a standard price index that can be
followed throughout the jewellery industry. Although most of the diamond
dealers rely on the Rapport price list, it is not sufficient to fix the price
as the list is only referred to as a benchmark. While the Rapport report takes
into account in the 4Cs of a diamond to fix the price, eventually the market
value of the precious stone is determined by two factors: supply and demand.
· It is relatively tricky to resell diamond
jewellery. Even though there are many options in the market to sell the diamond
stone, such as Craig’s list, offline jewellery retailer, a pawn shop, or an online
store, they’ll always offer different price as per their business requirement
and the gem’s rarity. But you need to be a tough negotiator crack a deal that
· You need to be patient with your purchase. A quick
buy-sell strategy would not yield any favourable result for your investment as
there is no guarantee that the diamond prices would shoot-up in the upcoming year.
Give you buy time and research the market before thinking about reselling it.
By now, you know the pros and cons of buying a diamond
accessory for investment. You also possess knowledge about how to go with
investing in diamond stones. But you are welcome to call us on below number if
you have any doubts/queries still stuck in your head.