Is Diamond A Good Investment?

Diamonds have been said by many to be a poor investment. Perhaps, but if you shop wisely, the diamond should retain its worth.

Typically, high-quality diamond investments are either quite large or very uncommon fancy colours. Because of this, only diamond merchants and the really wealthy can afford to invest professionally in diamonds.

Most individuals don't give much thought to the diamond's true worth when purchasing one for an engagement ring or other jewellery. In reality, the vast majority of consumers pay hundreds to thousands of percent more than the wholesale price for diamonds and diamond jewellery, leaving them with an asset worth just 20% to 50% of their initial investment. Find the perfect engagement ring in our curated collection of Sydney jewellery.

Of course, it doesn't have to be the case. Make sure you're getting your diamond from the appropriate source. The diamond you bought at wholesale will be worth less than what you paid for it (due to the merchant's markup), but it will increase in value over time and be worth more than what you paid for it within a few years (probably not in real terms though). We have compiled the ultimate list of Wedding Jewellery in Melbourne to help you choose the perfect accessories. 

So, here are some things to keep in mind while shopping for a diamond that will at least maintain its value:

• When it comes to certification, you want to make sure it comes from one of the three most trusted organisations in the industry: the Gemological Institute of America (GIA), the American Gem Society (AGS), or the Human Resources Development Institute (HRD). Take it to a second, unbiased appraiser just to be sure.
• Only a small fraction of the millions of polished diamonds in the world have an excellent cut, making them easier to sell.
• Consider using the web as a reference for pricing. The convenience of a physical store is appealing, but it doesn't mean you should spend double for a diamond that's only worth half as much. In addition, the prices offered by most brick-and-mortar stores and online retailers are same.
• There hasn't been a better moment to buy a diamond than right now because to the strength of the Dollar. Why? Given that diamonds are usually exchanged in US dollars, the high value of the Australian dollar against the greenback makes import and export prohibitive. If the Australian dollar drops to 70 cents and you buy a diamond for A$10000 (approximate conversion rate at the moment), the value of your diamond will increase in Australian dollars. Even if the Australian currency rises to 90 cents, you'll still lose money, but you can always invest in another diamond.

What You Must Understand

Recently, there has been a surge in the number of people looking to put their money into diamonds. More people are realising the value of diamonds rises steadily over time, which is a contributing factor. Diamond investments have grown in popularity despite this, for a number of reasons.

Despite the uptick in curiosity, many potential financiers still view diamond investments with suspicion. Investing in diamonds is more difficult than investing in other commodities since the diamond market is notoriously opaque. In addition, investing in diamonds is more complicated than investing in gold or silver.

That said, investing in diamonds may pay out handsomely. The market is straightforward to enter; all you need to do is put in a little research time beforehand.

Causes of Diamonds' Popularity as an Investment

Diamonds are an attractive investment option for a number of people. First, their value doesn't diminish with time. Almost without fail, the value of a diamond you purchase today will increase by the time you decide to sell it.

Meanwhile, the supply of diamonds has been shrinking even as the demand has increased. Diamond prices are projected to rise further as more individuals acquire them and fewer are kept in stock by suppliers.

Diamonds may be used as a safe investment. A diamond is an excellent example of something that can store a great deal of value in a surprisingly little area. They preserve their worth without depreciating or necessitating pricey upkeep. You don't have to pay any attention to diamonds as long as you keep them in a secure location.

Valuing Diamonds

Most individuals who are considering buying diamonds as an investment are put off by the difficulty of determining their value. The majority of us are aware that diamonds have monetary worth, but we have only a vague idea of what factors differentiate diamonds of varying quality. Our exclusive range of jewellery Sydney will help you find an ideal engagement ring.

Educating yourself on the 4 Cs of diamond valuation—carat, colour, clarity, and cut—is the first step.

Carat

Diamonds are valued most simply by their weight. Carats are the standard unit of weight for diamonds, however points can also be used as a rough estimate. One carat is equal to 200 milligrammes, while a tiara weighs only.01 carats. To give you an idea, a quarter of a carat is equal to 25 points, which is the standard for measuring diamonds.

Colour

D is the darkest and Z the lightest on the colour scale. With D representing the lightest colours and Z the darkest, the scale runs from very little colour to a wide range of shades. For diamond investments, less paint is preferable.

Fancy colour diamonds are the lone exception; otherwise, a higher degree of colour does not raise the value. However, this only accounts for a small fraction of all diamonds available, therefore they are not as valuable of an investment.

Clarity

The quantity and severity of flaws in a diamond are measured against its clarity grade. At 10x magnification, if a diamond has no visible imperfections, it is considered flawless. But the other 10 grades go all the way from "internally faultless" to "included."

Cut

The cut describes the shape of the diamond and how it disperses and refracts light. The expertise with which a diamond was cut determines how well it sparkles. The sum can be ranked from first-rate to dismal on a scale from one to ten.

The Risk of Diamond Investing 

A Warning About Diamonds It's true that diamonds may be a profitable investment, but you should be aware of the dangers involved. Pricing and value is one of the major concerns. Gold prices are easily accessible, and gold bullion, which has a stable value, may be purchased in a short amount of time. Prices for diamonds are not as easily discernible.

Because of this, it's important to only buy from trustworthy vendors. In addition, you need to demand certification of the stone's authenticity and worth. Diamonds can be certified by a number of different organisations, but the GIA and the AGS are two of the most respected.

As an additional problem, diamonds are not as liquid as many other investing choices. If you need to quickly convert your investment into cash, diamonds may not be the ideal choice due to their difficulty and length of the selling process.

The Diamond Investor's Guide

Investors who purchase diamonds do so with the intention of reselling them at a later date. Doing so requires tracking down a dealer from whom you may purchase diamonds. You shouldn't make a purchase from the very first vendor you come across. To get the greatest value, shop around at several stores. If you look around online, you could find a few vendors you can reach from the convenience of your own home.

An investment product with ties to the gemstones sector is an option if you want exposure to the market without actually owning any stones. Stocks in a mining firm, to provide one example, might be a viable investment choice. Additionally, you may consider investing in a sector-specific exchange traded fund.

Is It Wise To Put Money Into Diamonds?

To put it simply, diamonds are a great investment. They are compact, portable, and easy to store; they also have great intrinsic value, are in high demand, and endure forever (unlike that priceless Ming vase you just had to have at auction). The historical trend of most precious stones and metals indicates that their value will rise steadily over time.

While diamonds may seem like a good investment on the surface, the truth is quite different. It's partly because diamonds are typically sold in really uncomfortable packaging. When compared to gold, which is valued by weight because, let's face it, one block of gold is pretty much the same as every other gold block, diamonds do not have a uniform price per gramme. Because there is no two diamonds alike, their worth must be determined by a combination of factors, making each given appraisal somewhat subjective. As a result, picking out a diamond in the first place might be the most difficult step.

Despite this, a lot of individuals are putting their money into diamonds, especially because more conventional investment avenues have been falling short. Diamonds are looking like a great investment right now because of the low interest rates and dropping markets. But how does one go about investing in a diamond, and how does one know they will get a fair return?

If you don't know what you're getting into, we certainly wouldn't recommend buying a diamond as an investment. In light of this, we've compiled a list of the top three blunders individuals make when purchasing diamonds for investment purposes.

We Are Overpaying

The investment adage "Buy low, sell high" holds true across the board. However, "buying low" is trickier than it seems when it comes to diamonds.

One major cost is taxation. You'll immediately lose 20% of your investment unless you buy from a VAT-exempt region or through a VAT-registered business. That means you need a 20% increase in your diamond's worth just to break even.

There is also the profit margin of the retailers to consider. Since this varies from store to store, it's important to look around for the best deal possible. The number of times we've heard about folks trying to resell their "investment" diamonds to the trade and getting ripped on the whole purchase price is beyond counting. Good news: because to the rise of online shops, the diamond industry has been revolutionised, and you can now purchase a magnificent diamond for near to wholesale pricing if you buy from a trustworthy jeweller operating on thin margins. Stop by Temple & Grace, your one-stop shop for Sydney's finest jewellery.

The third issue is the presence of sunk expenses, such as the cost of the location. While it would be impressive to keep a stash of loose diamonds in a safe (maybe beneath a priceless artwork), most individuals prefer to have their diamonds mounted in a setting so that they can be worn and admired. Unfortunately, the value of the environment will be no more than that of scrap metal when the time comes to sell. In addition, how about protection against risk? Insuring your diamond jewellery is a good idea if you want to use it as an investment, but doing so will add to the costs you'll need to recuperate when you sell.

Need to choose the perfect wedding band? Check out our list of Wedding Ring Shops in Melbourne here. 

Excessively Upbeat

Diamonds are maybe the worst technique to earn a rapid profit. The price of diamonds rises and falls like that of any other commodity. Based on past performance, we can expect them to go up, but only very, very slowly. When considering how unlikely short-term returns are, buying in a diamond with the hope of selling it for a profit after five years is a sensible plan.

Before making a long-term commitment like buying diamonds, you should be sure that (a) you actually want to and (b) you can afford to do so. It's conceivable that you'll get back a lot less than you put in if you overpaid and then had to sell soon.

Treat yourself to something you've been wanting. It might help you enjoy it more while you have it and lessen the blow if its worth drops over time.

What May Go Wrong While Buying A Diamond?

Knowing which diamonds are worth investing in is the last and most difficult step when purchasing a diamond for financial purposes. An investment in a diamond that is easier to resale and more likely to bring in a higher price will make your life much easier in the long run.

In particular, it is crucial to only purchase diamonds that have been verified as genuine. In addition, when we say "certified," we mean "independently certified," not "the business you're buying from authorised" certification. Whether you're purchasing a diamond for investment purposes or as an engagement ring, this is always the case. It is far simpler to resale a certified diamond than one that hasn't been independently certified, and it will fetch a higher price if it has been certified by a reputable lab (GIA and AGS are best). If you want to be cautious, store the certificate somewhere else than with the diamond itself.

The diamond's cut might also have a role. If you're looking to recoup some of your investment, it's best to go for a round brilliant diamond, as this is the most often purchased shape. You may also choose from other common diamond shapes like the Princess cut if you'd like, but if you ask me, a round diamond is the best option.

Always go for the greatest quality available, which in this case would be a diamond with a cut grade of Excellent and above-average colour and clarity. Don't be misled into thinking that you need to get the largest or highest grade diamond available. The inverse is correct. A diamond with exceedingly high specifications will have a smaller pool of potential customers (those with deep pockets and expensive taste) and will be more challenging to resell. Instead, you may look for a high-quality diamond that has broad appeal, which is appealing to both commercial and individual purchasers.

Finally, you should run like hell if somebody attempts to sell you a "Chocolate," "Champagne," or "Cognac" diamond for a high price. So discoloured and brown that they are useless are marketing words.

Getting around potential problems

You could be thinking that diamonds are not a good investment currently, and you would be right if that's your only motivation for purchasing them. Your money would be better used elsewhere. Buy diamonds if you want to buy something that will improve in value over time and if you want to buy something lovely to wear right now. Just remember to abide by the Diamond Rules (far more dazzling than the Golden ones): 

• Try to avoid paying any VAT while making your purchase.
• Acquire a well-liked diamond cut that has been confirmed as being of excellent quality by a third party.
• Plan ahead for the time and manner in which you intend to sell.
• Get yourself a favourite item.

Check out our list of Wedding Ring Shops to help you find the perfect wedding band.

Successful diamond investment requires dedication, but the rewards may be substantial. Diamonds are an excellent long-term investment, but only if you're prepared to invest the time to learn about them. Buying and selling requires caution when selecting dealers and patience while waiting for a return on investment. Diamond investment isn't for everyone, especially if you lack the dedication and patience required. 

Conclusion

When faced with so many options, choose a cake may seem like the easiest choice. There is a wide variety of cakes from which to choose, but not all will be a good fit for your wedding. We have compiled a list of some of the most sought-after options below. The aesthetic and design features of the cake may be greatly influenced by the location. If you're planning an outdoor summer wedding, for instance, a delicate buttercream frosting won't hold up as well as a more robust fondant.

Word of mouth is the most reliable method for locating a reliable wedding cake maker. The quest for the perfect wedding cake begins once you've chosen your top two or three bakeries. Some bakers specialise in making exclusively nude cakes. Take the price of the cake into account, as well as the number of servings and level of detail in the design. Modern bakeries provide an incredible variety of creative cake flavours.

If you and your significant other don't know what might be best for you, have a taste test with the baker. What follows is a list of the most well-liked varieties of cake available today. If you want to know more about the many additional cake varieties, just contact your local baker. It's important to pick the wedding's overall theme and vibe before settling on the cake's overall design. Making a style board with pictures of cakes you like will help you narrow down your options.

The naked cake, which has no frosting or decorations, is also a more cost-effective choice. See below for a variety of wedding cake designs and helpful hints in selecting the best cake for your special day. Many factors point to small wedding cakes as the optimal choice for your big day. You can break with convention and have a variety of cake flavours in each layer. The frosting on a wedding cake may be quite fragile, so it's not something you can pick based on personal preference alone.

Meringue powder is the go-to frosting for wedding cakes. It is made from a blend of sugar, corn syrup, gelatine, and glycerine. To make ganache, all you need to do is combine melted chocolate and heavy cream.

Content Summary

• Diamonds have been said by many to be a poor investment.
• Perhaps, but if you shop wisely, the diamond should retain its worth.
• Typically, high-quality diamond investments are either quite large or very uncommon fancy colours.
• Most individuals don't give much thought to the diamond's true worth when purchasing one for an engagement ring or other jewellery.
• Find the perfect engagement ring in our curated collection of Sydney jewellery.
• Make sure you're getting your diamond from the appropriate source.
• The diamond you bought at wholesale will be worth less than what you paid for it (due to the merchant's markup), but it will increase in value over time and be worth more than what you paid for it within a few years (probably not in real terms though).So, here are some things to keep in mind while shopping for a diamond that will at least maintain its value:When it comes to certification, you want to make sure it comes from one of the three most trusted organisations in the industry: the Gemological Institute of America (GIA), the American Gem Society (AGS), or the Human Resources Development Institute (HRD).
• Consider using the web as a reference for pricing.
• In addition, the prices offered by most brick-and-mortar stores and online retailers are same.
• There hasn't been a better moment to buy a diamond than right now because to the strength of the Dollar.
• Given that diamonds are usually exchanged in US dollars, the high value of the Australian dollar against the greenback makes import and export prohibitive.
• If the Australian dollar drops to 70 cents and you buy a diamond for A$10000 (approximate conversion rate at the moment), the value of your diamond will increase in Australian dollars.
• Even if the Australian currency rises to 90 cents, you'll still lose money, but you can always invest in another diamond.
• What You Must UnderstandRecently, there has been a surge in the number of people looking to put their money into diamonds.
• Diamond investments have grown in popularity despite this, for a number of reasons.
• Investing in diamonds is more difficult than investing in other commodities since the diamond market is notoriously opaque.
• In addition, investing in diamonds is more complicated than investing in gold or silver.
• That said, investing in diamonds may pay out handsomely.
• Causes of Diamonds' Popularity as an InvestmentDiamonds are an attractive investment option for a number of people.
• Meanwhile, the supply of diamonds has been shrinking even as the demand has increased.
• Diamonds may be used as a safe investment.
• You don't have to pay any attention to diamonds as long as you keep them in a secure location.
• Most individuals who are considering buying diamonds as an investment are put off by the difficulty of determining their value.
• Our exclusive range of jewellery Sydney will help you find an ideal engagement ring.
• Educating yourself on the 4 Cs of diamond valuation—carat, colour, clarity, and cut—is the first step.
• The Risk of Diamond Investing A Warning About Diamonds It's true that diamonds may be a profitable investment, but you should be aware of the dangers involved.
• Pricing and value is one of the major concerns.
• Gold prices are easily accessible, and gold bullion, which has a stable value, may be purchased in a short amount of time.
• Because of this, it's important to only buy from trustworthy vendors.
• In addition, you need to demand certification of the stone's authenticity and worth.
• If you need to quickly convert your investment into cash, diamonds may not be the ideal choice due to their difficulty and length of the selling process.
• Doing so requires tracking down a dealer from whom you may purchase diamonds.
• To get the greatest value, shop around at several stores.
• An investment product with ties to the gemstones sector is an option if you want exposure to the market without actually owning any stones.
• Is It Wise To Put Money Into Diamonds?To put it simply, diamonds are a great investment.
• They are compact, portable, and easy to store; they also have great intrinsic value, are in high demand, and endure forever (unlike that priceless Ming vase you just had to have at auction).
• Despite this, a lot of individuals are putting their money into diamonds, especially because more conventional investment avenues have been falling short.
• Diamonds are looking like a great investment right now because of the low interest rates and dropping markets.
• But how does one go about investing in a diamond, and how does one know they will get a fair return?If you don't know what you're getting into, we certainly wouldn't recommend buying a diamond as an investment.
• In light of this, we've compiled a list of the top three blunders individuals make when purchasing diamonds for investment purposes.
• We Are OverpayingThe investment adage "Buy low, sell high" holds true across the board.
• However, "buying low" is trickier than it seems when it comes to diamonds.
• You'll immediately lose 20% of your investment unless you buy from a VAT-exempt region or through a VAT-registered business.
• That means you need a 20% increase in your diamond's worth just to break even.
• The third issue is the presence of sunk expenses, such as the cost of the location.
• Insuring your diamond jewellery is a good idea if you want to use it as an investment, but doing so will add to the costs you'll need to recuperate when you sell.
• Diamonds are maybe the worst technique to earn a rapid profit.
• When considering how unlikely short-term returns are, buying in a diamond with the hope of selling it for a profit after five years is a sensible plan.
• Before making a long-term commitment like buying diamonds, you should be sure that (a) you actually want to and (b) you can afford to do so.
• What May Go Wrong While Buying A Diamond?Knowing which diamonds are worth investing in is the last and most difficult step when purchasing a diamond for financial purposes.
• An investment in a diamond that is easier to resale and more likely to bring in a higher price will make your life much easier in the long run.
• In particular, it is crucial to only purchase diamonds that have been verified as genuine.
• It is far simpler to resale a certified diamond than one that hasn't been independently certified, and it will fetch a higher price if it has been certified by a reputable lab (GIA and AGS are best).
• The diamond's cut might also have a role.
• Always go for the greatest quality available, which in this case would be a diamond with a cut grade of Excellent and above-average colour and clarity.
• Don't be misled into thinking that you need to get the largest or highest grade diamond available.
• Instead, you may look for a high-quality diamond that has broad appeal, which is appealing to both commercial and individual purchasers.
• Getting around potential problemsYou could be thinking that diamonds are not a good investment currently, and you would be right if that's your only motivation for purchasing them.
• Buy diamonds if you want to buy something that will improve in value over time and if you want to buy something lovely to wear right now.
• Acquire a well-liked diamond cut that has been confirmed as being of excellent quality by a third party.
• Plan ahead for the time and manner in which you intend to sell.
• Get yourself a favourite item.
• Successful diamond investment requires dedication, but the rewards may be substantial.
• Diamonds are an excellent long-term investment, but only if you're prepared to invest the time to learn about them.
• Buying and selling requires caution when selecting dealers and patience while waiting for a return on investment.
• Diamond investment isn't for everyone, especially if you lack the dedication and patience required.