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Are you planning to make your precious jewellery an investment option?
If you want to invest your money in a rare diamond can make a great investment. According to industry experts, some diamonds can offer good returns due to their high intrinsic value. On top of all, diamonds have steadily increased in recent years. Gold is predictable and stable and is valued by its carat weight or whereas diamonds don’t have a universal price per carat. In this case, buying a top-grade investment grade diamond is the best option and offers good returns.
This is because when each diamond stone differs in its cut, color, carat, and clarity, they have to be valued based on the merits that the Jewellery Valuation Laboratory Melbourne can provide. It also means that the diamond you buy can predict the ROI years later. However, how do you go about choosing a diamond for investment? This blog post, we help you understand the pitfalls, awareness, and mistakes people should avoid when investing in diamonds.
Risks of Buying Diamonds As An Investment
Know The Price Transparency
Always follow this “Buy low, Sell High” when investing in anything. When it comes to diamonds, buying at a lower cost is nearly impossible. First comes the tax, and there’s no fixed price index for diamonds. Their price will depend on market supply and demand.
Long-Term & Poor Tradability
Second, diamond prices may go down and up like every other commodity. Diamonds are not a short-term investment; it takes time to increase in value. So, it would help if you had the patience to reap its benefits. Also, buying diamonds is easier than selling them. Sometimes, companies may be willing to offer you a price much lower than what you had paid.
Beware Of The Hidden Costs
Sometimes, more than the diamonds, the setting you would like to have can cost you more. But the setting may be considered scrap metal and won’t bring you any value when it comes to selling. Next is your Insurance; if your diamond jewellery is expensive and worth the investment, you must insure it. Also, get a proper and detailed jewellery valuation certificate from a registered jewellery valuer to avoid unfortunate circumstances.
Choose The Right Diamond
Some diamonds have a better resale value. Most buyers fail because they don’t know which diamonds are worth investing in. Also, while buying diamonds ensures a grading report by certified labs like (GIA & HRD), it reserves credibility and value. Your diamond shape can also be a factor that comes into consideration. While shopping, choose a round brilliant diamond with an excellent cut grade, clarity, and color. We don’t mean you must empty your wallet by investing in an expensive rare diamond. Just choose a high-quality diamond with the best market appeal that buyers and private companies would be happy to buy.
Bottom Line
If you want to invest your money in a diamond that holds value, read our blog to save yourself from unnecessary pitfalls. If you have precious jewellery and want us to help you with the valuation, call and talk to experts at Jewellery Valuation Laboratory today.