We covered the basics of investing in diamond jewellery in one of our guides, and continue with the topic in this guide. While our aim is to help you acknowledge the benefits and risks involved in diamond investment, we also look forward to assisting you to begin your journey in the world with an investment with diamond stones.
As you already know about the basic and necessary factors associated with buying and investing in colourless diamond rocks and jewellery designs, here we attempt to take the discussion a little further. In this guide, we’ll outline the basics of investing in coloured diamonds and dig deeper into the aspects of everything related to investment in coloured diamonds. The risks and benefits remain the same for both the investment options.
There is absolutely no point in investing in something it does not provide a satisfactory return. We suggest that you invest in fancy diamond only if you see value in the investment. Here are all the potential and value an investment in coloured diamond bring you:
· Buy investment-grade diamond stone or diamond stone jewellery for investment purpose. An investment-grade diamond is a precious stone that has unique characteristics that can overcome or minimize the investment risks to return substantial value and have better chances to increase in price over time.
· Search for the rocks that are mined in their natural colour and not lab-treated to produce a particular. Only 1 in 10,000 diamond stones mined are naturally coloured, making them highly valuable and rare. They are not only likely to retain their cost price, but also increase in value as the demand for coloured vintage stones soars high.
· Unlike colourless diamond rocks that are naturally available in almost every shape and size, fancy coloured stones are unique. 4Cs of colourless diamond stone and coloured rocks are different in many aspects; extra attention is given to shaping and cutting naturally coloured stones to keep their hue intact. Hence, their resell value would also include such factors to boost its price.
Investing in colourless diamond requires specific knowledge about the 4Cs, but investment in coloured stones require an understanding of 4Cs of as well as the rarity and market for that particular shade. We’ve divided the fancy coloured diamond rocks into four categories to help you understand the concept better:
· Fairly common diamond shades: yellow, brown, and grey
· Mid-level popular diamond colours: intense and vivid yellow diamonds combined with a bit of orange
· High-priced and popular diamond rock hues: pure Orange, Purple, Pink, Green, and Blue
· Rarest of Rare: all shades of red
Notice that the above categorization is done based only on the colour of the diamond; the cut, clarity, and carat is not included. Thus, a Brown fancy coloured diamond of 10 carats would always have a bigger market and value compared to a Red naturally coloured diamond of 2 carats.
We advise that you look at the colour along with the 4Cs and the demand for the coloured stones to accurately assess the benefit associated with investing in fancy coloured diamond stones. To do so, you can talk an expert about the current market scenario and question them about which diamond jewellery/stones are incredibly popular among the buyers. Keep in mind that market changes as buyers’ demands evolve while putting forth your queries.
What is rare, always finds a place in the market. If you’re an enthusiast of collecting diamonds, then give a chance to coloured diamonds as well. They’re likely to increase in value and visibility over the years.
· Pink, Blue, and Yellow diamonds are the most popular among youths and celebrities. You must invest such colours as the trend is expected to grow in the future.
· You should invest in a coloured diamond if you’re passionate about keeping only the things that are rare and hardly occur in nature. The 1 in every 10,000 mined stones factor makes fancy coloured diamond a rarity in the market.
· A colourless stone will bring you money based on its 4Cs; a colourful diamond rock would bring you investment based on the 4Cs as well as its shade.
· Many people like collecting everything rare, and if you’ve got a rare diamond stone in colour, you’re likely to become their favourite seller.
· Diamond Certificate: A diamond is genuine and real only when it comes with an authentic diamond certificate issued by the right agency. Read everything about diamond certificates here and head on to invest in these precious stones only after you’re satisfied with your knowledge on diamond certificates and the issuing agencies.
· Fluorescence: It refers to the diamond’s character of emitting a soft coloured glow when under the influence of ultraviolet light. For colourless diamonds, more the presence of fluorescence, lower its demand and price. In terms of fancy coloured diamonds, fluorescence does not play a vital role as the stones themselves are of different shades. However, it would be best if you stayed away from fluorescence in yellow diamonds.
· 4Cs of Diamond: We’ve discussed 4Cs of diamonds in many and many sections of our jewellery guide. Read the dedicated section to the 4Cs and proceed after you gather enough knowledge about the four diamond characteristics before investing in diamond stones.
· Diamond Colour: As discussed in one of the sections above. Some diamond colours are rare and in high demand, while others are common and have low investment value. Hence, you should invest in diamonds based on the market price, demand, and rarity of a diamond rock.
For any queries related to diamond investment or purchase, call Melorra experts.
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