How to Make Sure a Diamond’s Value Appreciates Gradually

Loose Diamonds

Loose Diamonds

Interesting Diamond Facts

A diamond is a showpiece, especially on engagement rings and similar types of jewelry. Over the years, it has long held prominence as a token of one’s status, a sparkling reminder to the outside world of a person’s prestige and wealth. However, diamond values have greatly fluctuated over the years.

From the 1980’s booming economic excess when it was marketed as a “forever” gemstone to the breaking of a monopolistic market and the Great Recession period, the gemstone’s values as well as prices are a reflection of a number of market variants. Most notably, though, diamonds as well as their pricing are a reflection of both supply and demand.

Just like the prices of precious metals like silver, platinum, and gold, the market for the gemstone ebbs and flows in value, based upon the demand for gemstones as a commodity. For instance, when new diamond mining facilities are discovered, its price naturally falls as the supply becomes bigger. So is the gemstone an investment? Does it really appreciate over time? The answers to these questions are dependable on a lot of things too.

While the value of loose diamonds also appreciates gradually, how much or how fast it takes place is a more tricky question. Similar to most valuable things, the price of diamond increase with an inflation. The gemstone bought in the 1970’s would obviously be worth more in the modern day. However, whether that is owing to the rarity of the gemstone or inflation is difficult to understand and dependent upon more factors.

Diamonds as a Form of Investment

People invest in loose diamonds, especially, rather than using them as a part of an ostentatious piece of jewelry setting. When they are not mounted on a metal band, diamonds can gain in better value since it avoids making its worth dependent on the ring.

There are many ways, how purchasers can help to make sure that a gemstone retains and perhaps increases in value gradually. They have to take measures in order to protect the gemstone investment, as they would, say, manage a stock portfolio.

For instance, in case the gemstone is not certified professionally by a GIA laboratory, getting it done can help. Considered the most respected and accurate gemological laboratory, a GIA certificate is categorical in the market and may be awarded to an appraiser in order to value the stone. You can use the value appraised as the basis to judge gains against potential or future market values.

In addition, take good care of the gemstone if you use it as part of a diamond engagement ring setting. Make it a point to take it off while doing something active. Note that although a chipped gemstone can be cut again, the eventual carat weight or size will still lower its overall value.