Putting your money in colored diamonds can help in preserving your wealth. This alternative investment has proven to be lucrative for countless investors. However, just like any other type of venture, it is important to understand that this kind of investment can only give you substantial gains if you have ample knowledge about colored diamonds. Before you start buying, here’s how colored diamonds can help in growing your money.
Great Value for Your Money
One of the main reasons why you should consider putting your money in colored diamonds is their great value. The potential profits you get from a fancy blue or green diamond is higher, especially if the proportion of the price to the size and weight of the stone is factored in. However, in order for you to reap the maximum benefits of this type of investment, you should always make it a point to buy diamonds from reputable sources. Also, take time to study and become familiar with the colored stones market.
Established Techniques Used to Determine Diamond Quality
One good thing about investing in diamonds, whether colored or clear, is the presence of established and reliable standards that can objectively measure the carat, clarity, and color of these precious stones. There are a number of reputable institutions around the world that specialize in grading and measuring the value of diamonds. Moreover, grading tools are widely available such that even regular individuals can easily learn how to determine diamond authenticity.
Steadily Increasing Diamond Prices
Major auction houses can attest to the fact that diamond prices are steadily increasing, especially natural colored stones. In 2008, the Wittelsbach-Graff Diamond, a natural grayish-blue stone, was sold for a record-breaking price of $24.3 million in a reputable auction house in London. It is also worth mentioning that the supply of natural diamonds with fancy colors is very limited. For every 10,000 carats of mined diamonds, only 1 carat can be considered as a fancy colored stone. A limited supply would mean higher selling prices.
As more and more people realize the rarity and beauty of deep green, vivid blue, bright pink, intense yellow, mysterious black, and fire orange diamonds, the demand for such stones continue to grow. Another reason for the surging demand for colored diamonds is the growing number of Hollywood celebrities that buy and use them. Moreover, many men nowadays are wearing diamond jewelries as part of their getup. So men are expected to contribute to the growing demand for colored precious stones, such as black or deep blue diamonds.
Ease of Storage and Portability
Lastly, colored diamonds are a great investment because they are portable and can be easily stored. If you have a couple of pink diamonds, you can easily carry such multimillion dollar investments with you without anyone knowing about it. You also do not need a huge safe in order to keep them. Furthermore, you can use your precious stones as jewelries without worrying about any possible loss in value.
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(Credit for article: http://www.finweb.com)