Click to Call!

4 Tips for Investing in Diamonds

You Inherited a Diamond: Now What?
March 2, 2020

4 Tips for Investing in Diamonds

It’s no secret that the market can be turbulent, especially in times like these. With investments on everyone’s mind, many people are turning to physical commodities instead of simple cash investments. Diamonds are a common means of investment in physical objects, as they are small and durable, as well as inflation-proof. Getting started can be overwhelming as you want to ensure you are starting with the right pieces and the right partners. Here are 4 tips from Diamond Treasures trusted experts in Houston, TX to ensure your investments pay off.

1. Learn the Basics

If you are going to invest in diamonds, you want to make sure you understand the language being used by buyers and sellers. You’ll want to make sure to understand varying elements of diamonds such as the “4 Cs”, which are cut, clarity, carats, and color. By knowing what these mean and what you are looking for, you can go into any potential transactions armed with knowledge of your preferences and what makes a good investment. Just like you wouldn’t blindly buy stocks, go into your diamond investments with knowledge.

2. Diversify

Just like any investment, the diamonds you have will form a portfolio, and the best option is to make sure it is diverse. Rather than investing your full budget in one diamond, it can often be wise to split your budget amongst smaller and varied pieces. One piece may rise more quickly in value where another dips over time. Having multiple options will allow you to liquidate parts of your collection without losing all of your investments at one time. If possible, buying multiple diamonds of multiple types can give you the most options for dividends in the future.

3. Choose Rare but Desired

Choosing which diamonds to invest in can be a difficult balance. It’s not the best idea to buy diamonds that are very common or easy to obtain as it will make selling that diamond harder later. You may end up competing with a large number of sellers and manufacturers, jeopardizing your ability to make money. However, you also don’t want to buy something so rare that there is no demand for it. Unique pieces with class qualities, such as a cushion-cut blue or pink diamonds, can offer this balance. Choose pieces that you like and trust your gut instincts on what piece is a good investment.

4. Trust Your Partners

When investing, it’s important to ensure your diamonds are certified and trustworthy. Buyers are likely to check this information and you want to be credible. Having access to experts to advise you on the quality and price of diamonds can be invaluable, especially as you begin this journey. Don’t hesitate to ask any questions of the experts- that’s what they’re there for! The more trust you have in these partners, the better you will feel about your investments. At Diamond Treasures, we offer free consultations to make sure you are starting off on the right foot!