What You Should Know About Color Diamond Investing

Diamonds; they are one of the most highly sought after and prized natural resources on the planet. They take years to perfect under the stress of extreme pressure and heat beneath the surface of the earth, and not all of them emerge from the process unscathed. Some have birthmarks (inclusions or blemishes) that detract from their perfection. Yet, nearly every diamond offers value and gains appreciation over time. Are you about to invest in colored diamonds? Let’s consider a few pointers you should consider first.

Education Is Imperative

As is the case with any investment, education is imperative. Before you even consider jumping into the colored diamond market, take some time to research the subject. Read up on material ranging from how to spot a high quality fancy colored diamond to current market trends, including supply, demand, and appreciation (or depreciation) records.

Unlike traditional, colorless diamonds, colored diamonds are not sold according to a predetermined price list. These rare and unique stones carry a unique pricing equation. The physical attributes of a colored diamond will dramatically affect its value. Before investing, learn as much as you can about the colored diamond trade and investment opportunities.

Color diamond investing

Seek Professional Assistance

In addition to educating yourself in all aspects of the natural fancy colored diamond market, it is essential to appoint a professional expert in the field that is completely trustworthy. As well as finding and acquiring diamonds that are of investment value- which alone is a formidable task- it is necessary to determine their significance as part of an investment portfolio.

An experienced professional diamond dealer has an insight into stones that go beyond their physical description, the nuances of current trends and market indicators can only be felt on the trading floor and such information is essential to successful investing.


Determining Your Budget

Education and the relationship with a professional diamond dealer only represent part of the key to success. Planning and the realistic assessment of an appropriate budget are both equally as important. Natural fancy colored diamonds are found in any size and colors in different hues and shades, and the vast variety of shapes and qualities means the scope of investment possibilities is open to all.

By initially establishing a budget, one can begin the exciting search for diamonds to match the set parameters.

Understand Liquidation of Assets

Although Natural Fancy Colored diamonds do not necessarily provide a quick turnaround, over the past 30 years, price performance has been beyond exemplary, and it is expected to grow as we move into the 21st century.  Diamonds are timeless, and their price growth is directly related to time.

No two colored diamonds are exactly alike. They are each incredibly unique and rare. Market inflation holds no power over the value of a diamond, and the stone itself can never be duplicated. While some diamonds are similar enough to be paired, thus increasing their overall value, each is still unique.

Successful liquidation of assets can be challenging, as a commodity, diamonds are heavily traded and the market for them is dynamic allowing for opportunities to be taken at critical moments. The understanding and evaluation of these moments is an important factor in the return of a diamond investment.

The relationship with a diamond dealer as an investment consultant adds immensely to the attainment of substantial returns and even if this is undertaken for a fee the advantages far outweigh the costs.

Prudence, patience, education and sound advice create a good investment forum for natural fancy colored diamonds.


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