Friday, 20 July 2012

Investing in diamonds

If you have some money that you would like to invest, diamonds are a great option. They are particularly useful in times like these, when banks are a little unruly and economies are being challenged. Best of all, you can get plenty of enjoyment out of a diamond investment by setting it in a piece of jewellery!

Before you start looking at what designs you like, here are a few other reasons why you might like to invest in a diamond.

- Long-term investment
 As we all know, diamonds are a good long-term investment. Rather than gaining value immediately (and therefore being subject to quick changes in value which can go either way),  diamond value increases over a period of years. The two most important factors in increasing value are increased demand and decreased supply. As demand in Asia, South America and the Persian Gulf explodes, there become more and more people looking to own the same stone, making it more valuable. Another important factor determining the rising value of diamonds is the volume of production by mining companies. It is thought that the major mining company De Beers is anticipating a diamond shortage and therefore is reducing the volume of diamonds they produce. When we remember that only 10% of  available diamonds are of suitable quality for use in jewellery, it is clear why the impact of any reduction in output would greatly increase the value of diamonds - they become even more rare!

- Safe investment
 In times like these, when money is tight and both economies and currencies are insecure, diamonds are the safest of investments. They are accepted universally and not tied to any currency. While gold is used to determine currency value, diamonds are not. Therefore, their value is far less likely to fluctuate and is much more secure.

- High value-to-weight ratio
The value of a diamond is often equal to that of a few gold bars, but good luck wearing those around your neck, on your finger or in your ears! Because diamonds have high value but lower mass than other investment items, they are very practical. Whether worn in jewellery or kept hidden in a safe, they are discrete and easily transportable.


- Easy to manage
Unlike property, bonds, the trading floor and all the various mind-boggling options offered by the banks, diamonds don't require special or expert management. The knowledge required for diamond-purchasing is very easy to grasp and any good and trusted jeweller should be able to explain diamonds clearly to you when you visit them. Once you've sourced your chosen stone, it can be kept loose or set into jewellery. After that, it is simply a case of wearing and enjoying your diamond, or  putting it in a safe or bank where it will retain the value and physical properties as well as being easily accessed if required.



For these reasons, you should always buy the best diamond that you can afford at the time. Although this is true of all jewellery, the fact that diamonds retain and increase their value over many years means it is always worth investing as much as possible at the point of purchase to get the maximum gain. By this I mean that if you are wanting to invest in a stone, it is better to select a single diamond with as high a carat, colour and clarity grading as possible than a selection of many smaller and less clean stones.
On the other hand, the value of pave-set or cluster pieces is in the item of jewellery as a whole, and this makes them worthwhile and beautiful investments too.

To start your diamond investment journey, for inspiration or for more information, please do visit us at 42 The Grove, Ilkley, West Yorkshire. We look forward to seeing you. If you live too far away to visit in person, all our contact details are here.

www.jeremybloomfield.co.uk

If you already have a stone and would like to use it to create a stunning piece of bespoke jewellery, please visit bespoke design at Jeremy Bloomfield.

If you have some jewellery which is in need of an up-to-date valuation, please visit valuations at Jeremy Bloomfield

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