Why you should not invest in diamonds? This is a common question replied by the financial advisors. As the answer needs basic understanding of the gemstone and jewellery market as well as the expertise of financial issues, individuals are suggested to invest in gold jewellery instead buying diamonds and other jewels.
Buying diamonds as an investment might be a bucket of benefits in the long term, though it needs certain points to be checked prior purchasing. These are basic tricks to secure your money investment as well as making it worthwhile.
1. What is your way to invest? You can invest money either purchasing shares in a diamond mining company or having a real one. If you choose first method, it will follow market rules but if you go for second, you should remember following tips.
2. Diamonds are not liquids. The stunning stone is not a liquid asset that means you can’t sell it or buy without following a certain process.
3. Diamonds are extraordinary so their prices too. Every diamond is precious in specific conditions. If it is owned by a celebrity, historical personality or is related to a famous story, it will fetch maximum amount regardless its actual cost. It is valued more than other gems. In another case, a common diamond will be sold at market prices.
4. Diamonds are recycled. Unlike other gemstones, diamonds have a vibrant recycled market. Recycled diamonds are diamonds that have been polished and set into jewellery, then removed, sorted and re-cut for sale back into the diamond industry. This market is supplying stone more than 5-10% of current market demand. So buy recyclable diamonds if you can.
5. You need professional’s help. Professional experts assist you to pick correct choice in doubtful conditions. They are experts and know how to cope with crisis, hire a good professional if you are going to invest a huge amount in diamond investment.
6. Keep essential documents with you. Diamonds are sold with certificates. These certificates help to authenticate and evaluate its real price. Without these papers, you will have nothing to prove your gem’s genuineness. So keep them whenever you are trading jewels.
7. Every diamond is unique. Since every diamond is different than the other, it can be recognized observing its crystal structure. Never think to compare two diamonds because two diamonds of the same weight, quality and size depending on other factors.
8. Selling a diamond need efforts. You need more homework to sell your stone if you want to receive a good return. Perhaps you will have to sell it to auction houses, stores or diamond collectors, take care.
9. Government keeps a watch. Every investment is considered by the government and concerned authorities.
In the last: It would be wise to consult with market experts and your financial advisors as well as you do homework.