Natural diamonds are loved for their brilliant shine and beauty, but they are also loved for their ability to appreciate over time. This makes diamonds a hot commodity for investments. However, many people tend to have questions about this type of investment. Here are some of the most frequently asked questions and their answers.
1. Are Natural Diamonds Truly Rare?
The simple and short answer is yes. The longer answer is that significant-sized, high quality natural diamonds are rare and hard to find. The reason for this is that there are geological limitations and mining economics has an effect as well.
2. What’s the Difference Between a Real Diamond and a Synthetic One?
This is one of the most common questions, and an important one. Some synthetic diamonds can only be detected with special equipment. That is why it is always crucial to seek out a diamond from a trustworthy source and to demand certification.
3. What are Good Diamonds to Invest In?
This is a difficult question, as there are many answers and it depends on multiple factors. However, generally speaking, there are two types of diamonds worth investing in long-term. The first category is color diamonds, as they are very rare and demand high prices. The second category is a colorless diamond that is over a carat in size, flawless, and is cut well in a popular shape. Such diamonds run around approximately $20,000 and will see appreciation over time, but one cannot expect a quick turnaround.
4. Do Diamond Mining Companies Determine the Value of a Diamond?
This is also a complex question, as the answer is both yes and no. Yes because the companies have control over production and can determine their supply to some extent. They also have a huge influence thanks to their marketing strategies, causing a massive demand for diamonds worldwide. The answer is also no, because diamonds are nature’s rare gift to Earth and are not found in the abundance we desire. They are also challenging to find and require expensive equipment, a lot of time, and a great deal of labor.
It is natural to have hesitations about investing in a diamond. However, on the plus side, unlike other investments, diamonds can be worn and put on display all while waiting for its value to rise. Carefully selecting the right stone, not having unreasonable expectations, and knowing everything you can possibly know about diamonds will make the whole diamond investment experience more enjoyable for you.