Are Diamonds A Good Investment? How To Get Started

Posted by JewelryKind

It’s always wise to make money work for you. This can help you get away from your 9 to 5 work shift and be comfortable at home. If you have extra money to work with, investing them into something profitable over time will be the wisest decision you’ll ever make. While there are plenty of investment options, diamonds are ideal for your portfolio.  

What Is A Diamond? 

Diamond is a mineral created from pure carbon. It’s the hardest natural element that only a pair of diamonds can scratch them. On the Mohs scale of hardness, they have the highest level of 10, which makes them beautiful and sturdy. Its hardness allows most jewelers to use diamonds because of their durability, brilliance, and timeless beauty, regardless of the shape or setting in which they are placed.  

Diamonds generally come in clear or white colors. However, there are some instances where they come in different colors, such as pink, black, purple, yellow, olive, or blue. Investing in pink diamonds is a popular choice as they emit a unique and romantic color that most diamond buyers would love to have.  

Beautiful shiny diamonds on black background

Are They A Good Investment? 

Diamonds are popular for their high price tag. But don’t worry, as you’re not putting your money down the drain; they’re an excellent investment. Yes, a diamond’s value increases yearly, turning your investment into something profitable. You’d be surprised to see how your diamond might double its price after a couple of years.  

Diamonds have a classic elegance that will never go out of style, so they are frequently used in jewelry. This guarantees a market as someone will always buy diamonds as their luxurious piece. Moreover, going with pink or colored diamonds is an excellent investment as they’re rare, making them more expensive year after year. So, it would be best to find out how much is a pink diamond worth and decide if it fits within your budget or if you should proceed with the traditional colorless ones.  

How To Invest In Diamonds 

As investing in diamonds piques your interest, you might be itching to get one right away. But before you go diamond shopping, you should know how to invest effectively. To help you out, below are some tips to get started with investing in diamonds: 

  1. Learn About The Basics 

Diamonds are challenging to work with if you aren’t familiar with their intricacies. There’s more to them than meets the eye. Diamonds vary in price and resale value depending on their characteristics, which are defined by their specifications.  

To begin, you should know the 4Cs of a diamond. The 4Cs include color, clarity, cut, and carat.  

  • Color – It applies to colorless diamonds. It can range from D-Z. D-F indicates the most colorless hue, while R-Z gives off a light yellowish tone.  
  • Clarity – It dictates how flawless the diamond is. Grade F indicates a perfect finish, while VVS1-VVS2 indicates a slightly included, showing a small amount of imperfection. The range will go on until I3, which is less rare, making them less expensive.  
  • Cut – It determines how the sparkle will go through every corner of the diamond. A diamond with a cut that’s too shallow or deep will force the light to pass through the diamond, not allowing maximum shine.  
  • Carat – Its weight determines the size of the diamond. Most diamonds come in 0.5 to 2 carats as they look beautiful enough to add sparkle to any jewelry piece. In most cases, a larger diamond means it’s more expensive and rarer, which can help to increase its value. 

As you can see, understanding the 4Cs of a diamond can help you make informed purchasing decisions when investing in one.

  1. Buy At The Lowest Price 

With investments, you should always ‘buy low, sell high.’ However, this might not be the easiest case with diamonds since they come with a hefty price. Consequently, it would be best if you were careful with how much you pay for your diamond pieces.     

Remember that when buying diamonds, it usually comes with a value-added tax (VAT), which can take up to 20% of the actual price of your diamond. It’ll take you years before you can even break even. Alternatively, you can purchase diamonds in a non-VAT location. Furthermore, it would help if you also considered that a luxurious diamond store would increase their diamond prices as their markup. To maximize your investment, you should purchase at a store with a competitive price. This will spare you from dealing with a substantial retailer markup and immediately proceed with your investment.  

  1. Check Certification 

Of course, the last thing you’d want to happen is to buy a diamond only to find out that they’re not authentic at all. To avoid wasting money, you should check the certification of the diamond to confirm its authenticity.  

Ideally, you should purchase diamonds with Gemological Institute of America (GIA) certificates as they’re the leading gemological institute that thoroughly tests each diamond to check its quality. The certificate usually includes the 4Cs, allowing you to see how it’s crafted. Moreover, most diamond buyers would prefer to purchase diamonds with credentials as they can vouch for their authenticity.  

  1. Decide Between A Loose Diamond Or Mounted Setting 

You can purchase a diamond for investment in two ways: loose or mounted. A loose diamond is more practical as evaluators can quickly inspect every corner of your diamond and provide a fair price for its value. However, a loose diamond doesn’t allow you to wear your investment as you wait for it to increase its price.  

To make the most of your investment, you can mount it on a jewelry piece and allow yourself to wear it. Additionally, a high setting might help draw attention to the diamond’s beauty. However, if your main focus is on investment as you’d like to use a separate one for your jewelry, then a loose setting is a more efficient option.  

  1. Choose A Rare Piece 

Buying diamonds that are widely available on the market doesn’t call for a high resale value. To make the most out of your investment, ensure that you purchase a rare piece, but still high in demand. While buying the largest or best diamond would work, you might have difficulty finding buyers for your diamond piece. You should purchase a rare piece with high demand to make things easier. In most cases, any diamond larger than 2 carats is rare but attracts many buyers. 


Getting started in investing in diamonds can be tricky as you need to learn the basics along with how you can check for their authenticity. Since they come with a high price tag, you need to find an authentic one to make every penny worth it. Consequently, it’ll take years before your diamond pieces increase their value, so it’ll be practical to attach them to your jewelry. However, if you’re comfortable keeping them inside your home, it would still be up to you.  

About JewelryKind

Promote Your Store on JewelryKInd or Add your Article.
Welcome to JewelryKind