Have you been eyeing luxury investments for a while now? If you’re still undecided, you’re probably also wondering which products to choose to diversify your investment portfolio with minimal risks.
One option worth exploring is the billion-dollar worth diamond market, which has shown potential for growth and long-term value. With their timeless appeal in the fashion world, diamonds are now also gaining recognition as a solid addition to the world of luxury investments.
Now, are you curious to learn more as to why investing in diamonds is a great option? Keep reading this article to get started:
- Universal Appeal
Diamonds have always commanded attention and admiration. Their sparkling appearance resonates across cultures and geographical boundaries, and even more so for the most unique and rare diamonds that appeal to a universal audience. A pink diamond jewellery piece, for example, is considered not only rare for its colour, it’s also a sought-after piece anywhere in the world.
When you invest in diamonds, you’re not merely following a trend; you’re also investing in an asset with global appeal. Diamonds possess a timeless quality that outlasts fleeting fashion trends. They maintain their visual appeal and high value, making them an ideal investment in fashion.
2. Increasing Demand
As global incomes increase, people’s propensity to spend on luxury items also rises, further boosting the interest in luxury investments. Consequently, the demand for precious assets, including gemstones, grows with economic development. This also presents a lucrative investment opportunity for those looking to capitalise on this market trend.
3. Limited Supply
High-quality diamonds are understandably more expensive due to their limited supply. Their ever-increasing demand also paves the way for significant price appreciation. However, rare and unique diamonds are even rarer and, therefore, more limited.
In any auction for precious gemstones, a rare piece naturally attracts higher bids, further enhancing its value. These unique diamonds are a smart investment choice for those seeking high-value returns.
4. Unique Artistry
Diamonds are not simple gemstones; they’re art pieces. A skilled artisan can transform a raw gem into an exquisite work of art, with the design and craftsmanship enhancing its appeal and value even further.
One perfect example is a solitaire diamond ring that embodies the artistry of the designer. The refined appearance of this gemstone as a jewellery piece contributes to its investment potential.
5. Timeless Fashion Statement
Diamonds epitomise a timeless fashion statement that never goes out of style. When used to adorn jewellery and accessory items from necklaces to brooches, they can either just add subtle sparkles or be an eye-catching centrepiece that makes a statement.
This ability to blend with any design is what makes diamonds not only timeless but also a statement piece in any trend, era, and theme. With this quality, diamonds will always remain relevant and valuable not just in fashion but in the luxury market as well.
6. High Value
Diamonds are one of the gemstones with the highest value considering their size. A loose high-quality, well-cut, colourless diamond that’s only one carat in weight can cost between USD$1,500 to USD$16,000. For rare, coloured diamonds, the prices can reach as much as a few million, with the red diamond holding the record for the highest value per weight.
But if you’re investing in diamonds set in jewellery items, their value is influenced by more factors as they become part of a new whole. The unique artistry and design are considered major factors, with the quality based on the jewellery as a whole and not just the gemstone itself. For example, diamonds set in gold or platinum and other precious metals will drive the price even higher.
So, although loose diamonds are great investments as they’re easier to store, diamond jewellery can be a more valuable investment, especially if you prefer a piece that you can wear and not just store hidden in a vault or safe.
Factors To Consider When Investing In Diamonds
When investing in diamonds, you must first understand the nuances of the diamond market to increase your chances of a successful outcome. This includes familiarising yourself with crucial factors, such as:
- The 4 Cs: To evaluate a diamond’s worth, Carat, Cut, Colour, and Clarity (the Four Cs) are used as a standard. These criteria help appraise a diamond’s quality and value, so understanding them is instrumental to a successful investment.
- Rarity: Contrary to popular belief, not all diamonds are rare. However, diamonds with exceptional size or unique colours (like blue, green, or pink) are indeed scarce and, thus, more valuable. Knowledge about what makes diamonds rare can guide your investment strategy.
- The Resale Value: Be aware that diamonds don’t always appreciate over time. Depreciation is a common occurrence when attempting to resell your diamond. The resale value of your diamond is influenced by various factors like its quality, current market demand, and the time duration within which you wish to resell it.
- The Market Conditions: Events in the global economy can impact the diamond market. Macroeconomic conditions, currency fluctuations, and swings in consumer demand can all affect the value of diamonds. Therefore, keeping yourself abreast of the market trends and knowing when to buy is essential.
Understanding these factors that influence the price of diamonds in the market will help you make wiser investment decisions as trends change.
Final Remarks On Diamond Investing
Diamonds are more than just fashion statements. Their rising demand, scarcity, and unique charm make them promising additions to your wealth. If you’re looking to diversify your portfolio, consider diamond investment opportunities. This could be the perfect dazzling touch you need on your investment journey.
