Diamonds as Investment?

Investing in diamonds offers sentimental value, trust with certificates like GIA/IGI, historical price appreciation, rarity, and easy selling options. Fancy colored and cut diamonds are lucrative. Shining Diamonds offers low prices, up to 80% lower than high street retailers. Choose wisely for better returns.

THE PLEASURE OF WEARING YOUR INVESTMENT

 

 

Can you wear your stocks or bonds on your hands? Have you heard anyone saying “Wow that’s such a beautiful investment bond your husband has given you. I’m jealous!”. We start off this article by asserting that the biggest investment in diamonds is definitely sentimental. The joy of presenting a diamond ring and seeing the sparkle in your partner’s eyes is a wonderful feeling. Diamonds can be carried forward across many generations and their sentimental value only appreciates with time.

TRUST

The great thing about buying diamonds in this modern age is that you don’t need to be an expert. GIA & IGI are considered the top rated lab in the diamond jewellery industry. If you buy a diamond with GIA / IGI certificate, you can be sure the diamond you are buying is of the highest quality. A diamond with an top rated lab certificate will re-sell much faster and probably fetch a better price than one without. At Shining Diamonds we give all our customers the option and strongly recommend to buy diamond rings with GIA or IGI certificate. Check out our diamond engagement rings that can be bought with an external lab certificate. Even our Shining Diamonds certificate is issued by a GIA qualified gemmologist. To read more about diamond certificates click here

HISTORICAL PRICES

According to the Rapaport Diamond Index, most respected diamond industry benchmark, a typical one carat diamond with top clarity and colour cost around $6,100 (£4066) in 1978. Today it costs nearly $14,000 (£9500). That’s a 100% gain on wearable shiny investment. Or in layman’s terms, ask someone who bought a diamond ring 10 years ago the price they bought it at (note their diamond cut, clarity, colour). Research the prices of a diamond ring with same characteristics and you’ll see the price difference. Feel free to show that to anyone who tell you “diamonds loose their value over time”

RARE

 

 

The cost of diamond is high due to it’s rarity. Mining companies have to dig out 1000s of tons of Kimberlite to extract a single mid size solitaire diamond. With increasing demand and decreasing supply, basic economics of supply and demand says the value of diamonds will only appreciate.

SELLING DIAMONDS

Many consider diamonds as illiquid asset. However the reality is that it is now very easy to sell diamonds. With many customer auction sites like ebay, a diamond can be sold directly to another customer, eliminating hefty middle men profits.

BEST BETS

Rare “Fancy Colored Diamonds” such as Yellow, Pinks, Blues and Greens and “Fancy cut Diamonds” such as Pear, Marquise, Heart have proved to be better investment over the past years. Have a look at our fancy cut engagement rings..

The more expensive the diamond the better you can expect it to appreciate. Smaller diamonds have not appreciated (in some cases they have even depreciated) much compared to more expensive diamonds.

Another option for investors is the vintage diamond jewellery market, considered capable of more lucrative returns because of the added value of provenance.

WHERE TO BUY FROM?

At Shining Diamonds we work at extremely low margins and pride ourselves with offering the lowest prices anywhere possible. We are as much as 80% lower than high street prices and 20% lower than other online diamond jewellery retailers. When you buy diamonds much below the prevailing retail rates you know you already have a head start with your investment. Many customers have bought their diamond rings from us and got it valued at 50% more than the price they paid us. Now that is when we would say “off you go!” with your investment. However, if you buy it from high street retailers or from expensive companies like Tiffanys, you are paying a hefty premium and it will take a couple of years of appreciation before you are able to resell even at your buying cost. Be wise and buy directly from manfacturers like us.