As with any investment, investing in diamonds comes with its own rewards and risks. Thus, you have to find the right knowledge to maximize your diamond investment. Investing in diamonds can be a super addition to your self-managed fund or diversified portfolio. With the right conditions of the market, diamond investments are really secure and have a steady and consistent history of growth.
Beyond the diamond industry, diamond doesn’t make an excellent short-term investment but is a great medium to long-term investment you can keep and appreciate. Investing in diamonds offers a very strong security because the market is regulated by the industry to stabilize the diamond prices and of all prized gems, diamond is still the most expensive and most popular jewel around the world.
Not all diamond varieties are perfect investments, however, and if you want to successfully invest in a diamond, it’s best to consult a wholesale diamond dealer about your options and buy the best diamonds from them at wholesale prices.
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Learn the essentials at least
You should begin by learning the diamond language, or the basics. Start by learning the 4 Cs associated with diamonds.
Set a budget
Bear in mind that diamond will be one of the investments in your portfolio. Of course, unlike stocks, your initial investment will be a little higher but this is not a reason to go beyond your budget or beyond the share of portfolio you had in mind.
Make diverse diamond investments
As with any kind of investment, it’s always wise to diversify your investment in diamonds. Regardless of your budget, it’s best to invest in different diamond varieties. For example, if you’re after pink diamonds, then your second diamond investments should be blue, yellow or even green.
You have no idea which diamond will rise higher or which could sell faster later on. Additionally, this is amazing as it’ll let you liquidate a share of your portfolio when you need to use some of your money.
Make a comparison of prices
One important point to note about diamond investments is that they’re different from stocks. The price of diamond is not set by the thousands of people bidding openly online. However, as there are numerous merchants online, you can easily assess the prices of the same diamonds. But this is more difficult to do with regard to colored diamonds as each is different.
Invest in rare yet desired diamonds
There’s really no use in investing in what everybody has. But if you have a unique natural colored diamond, say a pink or blue diamond, you’re in your own league. However, pay attention to “desired” diamonds. Trust your gut and apply common sense when buying.