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Investment Diamond | How Much Does It Cost And Where To Buy It

Today, there are many possible investments: from real estate to investment in gold bars, from art to numismatics, up to cryptocurrencies and stock market speculation. In this article, we will focus on an alternative source of income: the investment diamond, how much it costs, purchase advice and where it is. We will analyze all the features that investing in this precious stone offers.

Characteristic investment diamonds

Now let’s try to understand what we are talking about when we say investment diamonds, prices and characteristics.

Especially in recent periods, the market is focusing decisively on this type of investment:

The investment diamond, also called a financial diamond
And as happens when creating a new sector, new professions and new related investment companies appear on this market, and most of these companies have established solid business relationships with Italian banks, while selling the product directly or through intermediaries such as the agents and offices in charge.

Other investment companies, on the other hand, directly appoint sellers at the home of potential customers.

Now let’s see how investment diamonds must be, characteristics that they must have and the qualities that they must absolutely satisfy.

Uses of diamond

We take into account that about 80% of diamonds mined globally are used in industry; 20% of the product is used in diamond jewelery, while only 2% of these have the characteristics and weight suitable for becoming investment value diamonds.

We also remind you that the return on investment diamonds that are used in the jewelery industry are classified by international gradation scales, the famous 4Cs, namely:

  • Carat
  • Clarity diamond or degree of purity
  • Diamond color
  • Cut or cut of diamonds

Classification of diamonds

Let’s now analyze these four categories of diamond gradation and what they represent. Let’s start!

Carat weight diamonds

The weight of a diamond is expressed in carats, and a carat is equal to one fifth of a gram.

The carat of the diamond is divided into 100 points, so, for example, a 50-point diamond weighs a quarter of a carat, or 0.25 carats.

Purity of the diamond

Then we find the second essential feature: the diamond purity scale (Clarity, in English), or the natural inclusions of the diamond.

The fewer inclusions are present and the rarer and, therefore, the more expensive the gem.

How are diamonds classified?

Let’s now go to see the international gradation scale that is responsible for classifying the degree of purity of the diamond in question.

Scale of the purity of diamonds

Diamond FL
It implies a pure and unmarked gem

IF diamond
The degree of purity IF stands for an internally pure and unmarked diamond

Diamond VVS1 – VVS2
These diamonds have inclusions that are considered to be very very small and detectable with a 10X zoom lens

VS1 – VS2 diamond
The diamonds in the VS1 VS2 classification are characterized by having very small inclusions that can be identified with a 10X magnifying glass

SI1 – SI2 diamond
SI1 / SI2 clarity diamonds have small, detectable inclusions with a 10X zoom lens

Diamond P1 / P2 / P3
In this ranking the diamond inclusions are visible without any magnifying glass, therefore, to the naked eye

Color classification in diamonds

Another fundamental characteristic of value diamonds is color, since the gems in question can have different shades:

From the absence of color which is the rarest and most expensive variant
Up to having a series of color shades of diamonds
In this case, we have a universal standard scale used for color grading in diamonds.

How many colors does the diamond have?

Below is the color scale of the diamonds:

  • D color diamonds have an exceptional extra white plus color
  • Followed by color E diamonds with an exceptional extra white
  • Instead, the F color diamonds are of an extra plus white color
  • Then the extra white diamond belongs to the G color diamond classification
  • White diamonds are in the H classification of the color of diamonds
  • While, on the other hand, the I-J diamond is characterized by being white and slightly nuanced
  • On the other hand, the K-L diamond is of a shaded white color
  • Finally, the diamonds of color M and following are visibly colored
  • Diamond cutting

The last gradation that must be taken into consideration to define the quality of investment diamonds is the cut (cut, in English) which is the only one of the 4Cs of diamonds that is decided by man.

In fact, the higher the quality of the cut, the better the light reflection.

The analysis of the characteristics of the cut of diamonds is undoubtedly an operation that requires a lot of precision and skill, because in addition to analyzing the cut, there are two other parameters to be taken into consideration:

  • The cleaning of diamonds
  • The symmetry of diamonds

How many cuts does a diamond have?

As for the previous categories there is an international scale for the classification of the cut of diamonds, let’s see it below:

  • Ideal diamond cut
  • Excellent cut diamond
  • Excellent cut
  • Good cut
  • Medium F-cut diamond
  • Poor cut

How to buy investment diamonds?

Let’s now see where to buy investment diamonds.

The major diamond sales channels are essentially banks and traders in the sector, the prices offered by the latter are usually slightly lower than those offered by banks.

Therefore, it is more convenient to buy diamonds from a dealer, even if you have to be careful and evaluate a number of elements.

In fact, the authentic diamond must have a certificate of authenticity. This document provides information such as:

  • Diamond weight
  • Diamonds color
  • Diamonds size
  • Overall quality of the gem

Among the diamond certifications, the most authoritative are certainly those issued by:

  • The High Council for Diamonds, ie those that report the HRD diamond certification
  • The International Gemological Institute, signed IGI

Both are diamond certifications that have international value.

Lately, companies that sell investment diamonds online are increasing, in this case it is necessary to inform yourself well about the diamond seller and, if possible, get in touch directly.

We reiterate that it is always better to turn to diamond suppliers who can guarantee experience and professionalism.

Price investment diamond

Let’s now turn to the financial argument how much does an investment diamond cost?

Let’s start by making an example:

A 0.50 carat gem can cost 5,000 euros
But a 1 carat diamond, with the same quality, will not cost € 10,000, but € 16,000, as the diamond value per carat increases enormously with weight.
Regarding the purity of the diamond and the quality of the aforementioned diamonds value, we can definitely recommend the purchase of stones whose purity is between IF (pure diamond) and VS2, and the diamonds color between D and F, if you want to buy a investment diamond.

It should be emphasized that a VVS diamond or pure diamond will acquire greater financial value than another with VS or SI purity.

Investment diamond yield

In addition, the average return on investment diamonds prices has undergone an annual growth of around 8% in recent years, a figure reported by Rapaport Diamonds, the most representative international diamond price list in the world.

This means that the aforementioned investment diamonds are a safe haven asset and it is worth investing in these precious stones, also because compared, for example, to investing in gold bars, it has a more stable market price, which makes it an investment. more stable and smooth.

However, we recommend to those interested in purchasing investment diamonds that jewelers and insurance experts issue a gemological certification to determine the value of the diamonds.

Well dear friends of Financial Empires, you now have everything you need to start buying your investment diamonds.

Financial Empires, The Editorial Staff

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FINANCIAL EMPIRES

FINANCIAL EMPIRES is a web site magazine founded by Corrado Firera in 2021. The mag is focused on business, money and Investments topics. Our first purpose is to give you information and news. Please be sure to read our disclaimer policy.

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