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.

Loose Diamond Types

With the expansion of e-commerce it is almost impossible not to be able to find what you are looking for on the internet. Loose diamonds have become a popular gift because they can be found at wholesale prices.

A diamond represents eternal love.It has been discovered that the diamond is often more important than the ring. The latest trend in jewelry is for women to design their own diamond rings.

We have brought together some of the best information on loose diamonds, so that you are up to date when making your first purchase.

Round Loose Diamond

A round diamond is actually shaped like a cone, with a curved top (known among jewelers as “the crown”) that expands to a wider base, and then tapers downwards to a sharp point. This design was developed in the 17th century by Ambassador Julian Cardinal Mazarin (in fact, the first round brilliants were called Mazarins). To create maximum shine, he shaped the diamond to have 17 flat surfaces, called facets, which would reflect light from all sides. Another noted jeweler, Vincent Peruzzi, introduced 33 facets. But it was Marcel Tolkowsky who was able to devise a precise and thorough mathematical model for Mazarin’s design. Using geometrical calculations, he discovered that a 58-facet cut would create the maximum amount of brilliance, and then identified the perfect proportions of the crown, diameter and base.

Princess Loose Diamond

A real princess cut diamond is always square or rectangular, and incorporates many facets. Classic princess cut loose diamonds have 76 facets, and the multiple surfaces help reflect the light and create the princess cut’s beautiful shine. Today there are many variations of the princess cut, some having as little as 50 facets, while others as intricate as 144 facets. Traditionalists believe that the “perfect” loose princess cut diamond must have a proportion of 1:1 length to width—in other words, a symmetrical square. But there are many stones that take on a more rectangular dimension, with ratios of 1 to 1.15. Another advantage of the princess diamond cut is that it can help compensate for stones that have less-than-perfect clarity or color. It can be used to hide inclusions, or hints of yellowish or brownish streaks. However, one of the weaknesses of the princess cut is the fragile corners, which can be vulnerable to chipping.