In order to invest in diamonds one must become familiar with how diamonds are valued, produced, graded, purchased and sold. There are many variables when it comes to diamonds. Here are some of the main points to consider.
- COLOR, the better the color the more rare the diamond. This means that your diamond will be higher in demand if it is D - F with D being colorless and F being near colorless.
- CLARITY, just like color the better the clarity the fewer the imperfections in a diamond the more rare your diamond is. This will also be very important because diamonds with better clarity will hold their value better then diamonds with lower grade clarity. Because diamonds with high grades in clarity are very rare and more desirable. Investment grade diamonds are diamonds with the grades of FL - VVS1. You should stay away from diamonds with clarity grades that are lower then VVS1 for investment purposes unless you are able to buy the diamond for extreme discount below the RAP.
- CUT, the cut of a diamond refers to quality of light that is reflected by the cuts of the facets in the stone. The better the cut the better the stone will reflect light diamonds are graded from Ideal, Excellent, Very good, good. Diamonds with Ideal cut and excellent cut grades are suitable for an investment grade diamond.
- Summitry, refers to the quality of the symmetrical cut of the diamond if the diamond has too deep or too shallow of a symmetrical cut the light will not be reflected to its maximum potential. Symmetry is also graded from Ideal to good only diamonds with Ideal and Excellent ratings are good investment grade diamonds.
- Certification, there are many company's that grade diamonds. But Diamonds with a GIA certificate tend to be the most sought after. Diamonds that hold a GIA certificate will always get a better price then diamonds that hold certificates from other company's. Even if the diamonds are exactly the same.
How are diamonds priced? Diamonds are priced by the monthly Rap report guide this sets the price that the average retail sale for diamonds in a particular Carat and quality group are selling for based on the previous months sales of diamonds around the world. Most jewelers buy their diamonds from dealers for at least 20% below this price guide list for investment grade diamonds. Higher discounts are common for diamonds of lesser quality. Dealers buy diamonds directly from manufacturers for about 30% below Rap for investment grade diamonds.
It is almost imposable to get into the secretive realm of diamond dealers, traders, and manufacturers. The knowledge shared on this site is usually a closely kept secret.
How to pick a diamond for your investment?
- The diamond should be certified by the GIA or IGI
- The diamond should be at least 1.0ct
- The diamond should have a color grade for D -F
- The Diamond should have a clarity Grade of FL - VVS1
- The Diamond should have a grade of ID,EX or VG in the following areas Symmetry, Cut, Polish
- Never invest in a diamond unless the asking price is at lease 30% below the RAP. This will make it much easier for you to sell the diamond at a profit.
I hope that you have found these tip helpful. I you have any questions feel free to leave a comment or send an email to sfigroupinc@gmail.com
If you are interested in investing in high quality diamonds please send me an email I will also be glad to assist you when you are ready to sell your investment grade diamonds. We have the ability to broker high quality investment grade diamonds to suit any buyer. sfigroupinc@gmail.com