Diamond jewellery has been the most favourite of every woman and having a piece of diamond jewellery is a joy to be cherished forever. Even a pair of simple diamond studs can make a woman feel confident and complete. Diamond jewellery is one of the jewellery kinds which can provide you with the ultimate classy and sophisticated look. Perfect to be paired with both western and traditional attires, you can achieve different looks for different occasions.

Diamonds, being rare and one of the most precious gemstones, its demand is very high. During the past few years, buying diamonds as an investment has grown rapidly. Many people are opting for diamonds over gold as an investment-cum consumption option. Like any other investments, there are both pros and cons in investing in diamonds.

Benefits of Buying Diamonds as an Investment

There are several factors that make diamonds a good investment. Here are a few:

• Size
One of the advantages of owning diamonds over gold is its size. Unlike gold, this precious gem doesn’t need much space. Since a long time, diamonds were used as a great means of money transfer. In comparison to gold jewellery, a diamond trinket of the same size cost a lot more. So, diamond jewellery, be it necklaces, bangles etc., it makes a good option for investment.

• Good to Store
Great storage comes in small size. You can store a great amount of money in the form of diamonds in a small place. When it comes to diamond jewellery, it’s an investment that you can see, wear, hold and get good returns. So, many people find diamonds to be a better investment in comparison to other digital investments.

• Durability
Another beneficial quality of making diamonds an investment is its durability which is naturally bestowed upon. Since it is the hardest of all gemstones, you can remain assured that nothing will happen to your diamonds. In case of your diamond jewellery, when well-maintained there is no worry of your diamond jewellery wearing off.

Disadvantages of Buying Diamonds as an Investment

Apart from the benefits, there are a few risks associated with buying diamonds as an investment.

• Lack of price transparency
Metals such as gold have a price index that people can follow. However, in the case of this precious gemstone, there is no such price index and its price depends solely on the demand and supply of the market.

• No short-term benefits
When you invest in diamonds, don’t expect quick returns. If you think you can wait for its returns, you can invest in diamonds as a long-term investment.

• Lack of trading
Another drawback of investing in diamonds is that it is easier buying than selling. Though some companies buy diamonds, they will likely to pay you the price lower than the price you have bought.

Tips for Buying Diamonds

Investing in diamonds is a good option these days. However, make sure that you make it a small part of your investment portfolio. The price of diamonds fluctuates from time to time. It’s good to make alternative investments, as well.

If you’re planning to buy diamonds, look for the 4 C’s—

• Carat
This is a term you must be familiar with. Basically, carat is a measure that determines the weight of a diamond.

• Clarity
Though all diamonds have tiny imperfections but look for the ones that have little imperfections as such diamonds get the highest clarity grades.

• Cut
The brilliance of a diamond is always determined by its cut. The better is the cut of a diamond, the better sparkling effect it offers.

• Colour
The colour grade of a diamond refers to the lack of colour. Diamonds with little or no colour receives the highest grade and are of more value than the ones with visible colour.

Apart from these 4 C’s, another C which is also important is certification. No matter you buy a diamond necklace or an engagement ring, make sure you buy diamonds that are certified. Consider all the pros and cons as you do in other investment before investing in diamonds.