Why Diamond Jewelry is a Good Investment

Diamond jewelry is beautiful, special, and something that will last a lifetime— but it’s also a good investment. Diamond jewelry, like many other physical commodities, tends to increase in price over time, regardless the state of the economy. That’s because, while the diamonds themselves are valuable, so are the precious metals used in fine jewelry. And if a piece of diamond jewelry is especially well-crafted or exceptionally beautifully designed, that can also increase the value of the piece over time.

Are you thinking of investing in diamond jewelry? Or wondering if some diamond jewelry is a better investment than the rest? Let’s take a look at the best diamond jewelry to invest in.

The Best Diamond Jewelry To Invest In

When it comes to investing in diamond jewelry, it’s important to consider what holds value best in the market, as well as what will be the easiest to sell.

So, first let’s consider what kind of jewelry holds its value exceptionally well. When it comes to the value of diamond jewelry, the value of the jewelry is all about the market perception. And what’s the one thing the jewelry market cares most about? Rarity.

More rare diamonds are considered more desirable, across the board. And the type of diamonds that are the rarest? Colored diamonds and exceptionally high-quality white diamonds. Naturally colored diamonds are incredibly rare, with red and blue diamonds being the rarest. But pink, orange, green, and yellow diamonds are also quite rare and are, therefore, highly desired.

When you’re considering the investment quality of diamond jewelry, you should also consider the metal it’s set in. Gold (white or yellow) and platinum are both excellent investments that tend to hold value well. So, as long as your diamond jewelry is made with these precious metals, this will add to the overall value of your jewelry.

Now we move onto the next part of the investment equation: how easy your jewelry will be to sell. We’ve already covered that rare diamonds hold their value well, but it’s important to also consider what the market wants. Consider buying rare diamonds with highly desired cuts, like round or cushion cut diamonds, rather than unusual, less popular cuts like the marquise. Make sure to get a good feel for what the market consistently likes when considering whether or not a piece of jewelry is the best investment.

One last note on buying jewelry: always, always make sure the jewelry you buy is certified. Don’t take a seller’s word for it that a diamond has a certain carat or color— only buy diamond jewelry that comes with GIA certification so you know the exact value of what you’re buying.

Diamond Jewelry Investment and Diversifying

As with any kind of investment, it’s important to diversify your diamond jewelry investments. Consider collecting different kinds of diamond jewelry (like both blue diamond jewelry and yellow diamond jewelry, for example) to protect yourself from market fluctuations.

Investing in diamond jewelry itself is also a good way to diversify your overall investment portfolio. Acquiring physical investments like diamonds and precious metals is a good way to protect yourself from the fluctuations in other investments you may have, like stocks. When your investment portfolio is diverse, you can hedge your bets against the unstable market and set yourself up for a higher rate of success.