blue diamond pink and yellow

How to invest in colored diamonds?

For many people, colored diamonds are investment-grade gems, which have unique features that minimize the risk involved in the investment. The most interesting thing about natural colored diamonds is their rarity.

We often see movie stars and celebrities wearing colored diamond rings, which is why their prices are increasing rapidly every year. In today’s article, we will you how to invest in colored diamonds. Read on!

Do your Research

Before you choose a colored diamond for investment, you need to do your research and talk to people on the subject. The best way to know about color diamonds is by educating yourself through the internet. You can find articles, reports, and research papers that will help you understand the basics of colored diamonds.

Compared to colorless gemstones, companies and shops do not sell them according to a price list. Besides, certain factors can causes changes in the price of a colored diamond. You can find a lot of material to read and study different points on colored diamonds.

It is important to understand the basics of diamond trading. Also, we suggest you read on color diamond investments and figure out the best investment opportunities or options. The aim of doing research is to ensure you are not buying a low-quality diamond.

After all, colored diamonds are expensive investments and that’s why we recommend you take your time and get all the essential information. Thus, you can make an informed decision that will benefit you in the long run.

argyle diamonds

Plan your Budget

After doing your research, you will find out that a wide range of colored diamonds is worth your investment. However, some colored diamonds are very expensive that you may not afford it. That’s why it is essential to plan your budget so that you can purchase a diamond that is both high-quality and valuable.

Many people who take interest in diamond investment seek professional consultants to get information. If you do the same, keep in mind that the professional will ask you a few questions. Among them, the most important question is about your budget.

A professional consultant is a person familiar with the colored diamond market prices. He or she can help you choose a perfect stone that does not break the bank. If you are among those who prefer to put their money into an expensive diamond, then it is not a good idea initially.

For example, a 0.20-carat purplish-red diamond can cost you $300,000 per carat and the same diamond that weighs 0.40 carats will cost you $500,000. So, initially, we suggest you go for a 0.20-carat diamond. Again, the important factor is your budget and affordability.  

Seek a Professional’s Help

As mentioned above, it is essential to do your research or seek a professional consultant who is knowledgeable and skillful in the diamond market. It is not a good idea to find a perfect stone overnight because making decisions in rush can harm you.

On the other hand, we suggest you consult a person who has previously dealt with red diamonds. Besides, once you have found a professional, you should visit him or talk to him over the phone about diamonds.

Don’t forget to ask questions because your consultant is a qualified and experienced person who understands the industry better than anyone. So, there is a lot of information out there – so, don’t ignore the opportunity of seeking a professional’s help.

 

color diamonds pendant

Choose a Colored Diamond  

The most optimal way to decide on purchasing a diamond is to consider your budget. Depending on your budget, it is up to you whether you want to buy a single diamond that is worth $30,000 or 5 diamonds of each $6,000.

Again, colored diamonds are rare gems but if you want to split them into levels of pricing, you can do it in different ways. The best method is to categorize different colored diamonds.

For instance, the most common ones are grey, brown, and yellow diamonds. Mid-level gems have a vivid and intense yellow color with combinations of orange. High prices diamonds are rare and expensive, and they are available in pure green, purple, blue, pink, and orange. Red diamonds, on the other hand, are one of its kind.

Remember that this is a general classification of colored diamonds. Typically, you can find hundreds of such gems that are available in different colors. Basically, manufacturers treat them uniquely and combine the base colors to produce an individual colored diamond. Your goal as an investor is to find a colored diamond within your planned budget.

green and pink diamond ring

Consider GIA Certificate and Fluorescence

Before you buy or invest in a colored diamond, make sure it comes with a GIA certificate. It is a genuine way to know what you are buying. Also, as a buyer, you should ask the seller to show you the GIA certificate so that you verify the information before you start the purchase process.

Fluorescence is also an important factor to consider when buying a colored diamond. Fluorescence either improves the color of the diamond or makes it look hazy. For example, the slight fluorescence makes the diamond appear white.

However, strong fluorescence can make the diamond look more colorful, but at the same time, the gem will appear cloudy. These types of gems are sold at a 15-20% discount. Research shows that this factor in colored diamonds is irrelevant.

Look for Clarity

Experts argue that low clarity colored diamonds are hard to sell. When it comes to colored diamonds with low clarity characteristics, they are not considered worthy of investment. However, they do have a unique place in the market and their specific clientele.

Most often, people look for a pricy colored diamond, such as pink and blue as well as the size of the gem. In this regard, they ignore the clarity of the diamond, which plays a major role in the gem’s value and price.

Clarity refers to the absence of blemishes and inclusion. So, when there are fewer inclusions and blemishes, the gem has a better clarity grade. The best value and high clarity grade diamond for the investor are the VS2.