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 investment.
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 steps.
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 value.
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 opportunity.
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 benefits you.
· 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.