Are Diamonds a Good Investment?

Even though the diamond industry looks very complicated on the surface, it actually is very simple. Diamonds are often associated with being precious, mysterious, magical and romantic token of love.

Purchased at the right price, diamonds most certainly retain their value; in fact they actually increase in value over time. Over the last 20 years Diamond prices have been steadily increasing. Though there is no absolute certainty it is unlikely that diamonds will ever loose their value.

Thinking of these stones as the main part of financial or retirement investment is not advisable but when considered as a timeless and beautiful gift that symbolizes love and commitment, diamonds are an excellent investment.

Of all the tangible assets of investment diamonds are most advantageous:

• protection from inflation, bank bankruptcy, market collapse, currency reforms
• anonymity (no registration required)
• world-wide convertibility - diamonds are the only international accepted alternative currency which has the same value all over the world
• tax free betterment
• no maintenance costs
• very prestigious

You can also enjoy wearing diamonds in the form of jewelry. Lasting for a lifetime, diamonds are the only assets that serve as secure investment and also bring to you the wonderful feeling of beauty, luxury and passion.

The 4C's of Diamonds

When buying loose diamonds, or any other diamonds, a buyer should consider the now-famous 4 Cs: cut, color, clarity and carat. These four aspects of grading a diamond allow a buyer to determine its quality. The 4C's also determine the cost of loose diamonds - and set diamonds. However, a buyer has to determine which of these takes precedence in choosing a diamond.

Cut is different from shape. Shape concerns whether the diamond is round, emerald-cut, or pear-shaped. The cut of a diamond has a great deal to do with how it looks to the naked eye - how it sparkles. Buyers should look for cuts that are rated at least "good."

Color determines how much yellow tinge is present in the diamond. Some diamonds in the "H-J" range may appear nearly colorless, but much "warmer" than diamonds with less color. They are also usually less expensive.

Clarity refers to flaws or "inclusions" in the diamond. These grades range from the very rare flawless to "slightly included."

Carat is often thought to regard size, but in reality, it refers to weight. Of course, a heavier diamond is usually a larger one, but carat does strictly mean weight.

Before purchasing a loose diamond or a diamond jewelry piece, it is important to learn these aspects of diamonds so that you can determine the exact worth of your expenditure.