Invest in Diamonds

Diamonds are an investment instrument when purchased at the right price and with a quality that is highly demanded. Let’s look at this statement in greater detail:

Price: Diamonds can pass through several dealers before a consumer wears it on their finger and as such a margin or profit taking is applied in each step. Getting a good price means going direct to firms that deal with diamond cutters and cut out the middle man. Polished Diamonds deal with several large site holder firms that cut diamond rough – therefore the price is close to manufacturing / wholesale.

Quality: Diamonds come in different colours, different sizes (carat) and different clarity’s. If you have the top of each category the diamond is heavily demanded and this pushes the price up and forms an investment instrument. The higher the quality the higher the price but also the higher the gain as diamonds appreciate at a set percentage. Pink diamonds, Fancy Yellow diamonds are sought after and appreciate so form a good investment option.

As diamond mines slow production and alluvial or surface diamonds deplete it costs more to drill deep into the ground to extract the diamond. This extra work load increases the over-head price to extract and forces the price up. The Argyle diamond mine in Australia is the Worlds main source of Pink diamonds. The alluvial supply has stopped and they must drill deeper to find more diamonds which makes it more expensive. These diamonds will increase in value because of they are extremely rare and expensive to produce.

Diamonds can also be set in earrings while they appreciate in value. Buying 2 x 1.00 carat F-VS2, Ideal round diamonds can look amazing in diamond earrings or diamond rings while the years tick by and the price increases. How cool is that – you can wear your investment and get charming comments. Ever tried to wear a share certificate – ha ha.

Dan Joines: CEO of Polished Diamonds Intl