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Do Diamonds Increase in Value

Diamonds are one of the gemstones we have in the world, that are parts of a showoff piece. They are widely recognized and are held in high esteem. Over time, diamonds are top of the chart gemstones that serves as a reminder of one's status. It is used to speak of one's wealth and pride without having to say a word.

However, the prices of diamonds have inflated and deflated with time. Going back to the ‘80's when the economy flourished, when DeBeers held the stone market and publicized that a diamond last forever, to when their monopoly on the stone market was stripped from them; it is apparent that the value of diamonds depends greatly on various factors affecting the market.

What is much more apparent is that demand and supply also have a clear reflection on the price of a diamond and the diamond itself.

The price of a diamond goes up and down due to its demand as a commodity just like other metals and stones. The price of diamonds falls generally when new mines are discovered because there is an increase in the supply of these precious stones.

The question now is "are diamonds a good investment"? do they give a good profit in return for their selling price? Well, the profit of a diamond falls and rises with time but overall they are good investments. But how quickly they can increase in value is a more difficult question to answer.

The price of a diamond increases with inflation just like any other item of value. Therefore a diamond which was bought in the 70's will surely worth more than its cost price in 2017. Although to say that the price of a diamond rises due to inflation or that it is because of its rare nature depends on so many factors. 

The things that make a diamond a gem that is investment worthy are it's four features also called the four C's. these features include its cut, clarity, carat, and it's color. Its carat being the most important. The law states that every diamond is unique, therefore, a diamond with a big size and weight is often rarer due to its size. Notwithstanding the size, the clarity and color of a diamond are also important when investing in them. This is to say that, a diamond that is clear, large and colorless is sure to give a higher profit when sold.

Also, the scarcity of the perfect diamond that combines these elements makes any diamond have an increase in value partially because of the limitations of its supply and high demand of an almost perfect one. Those of less perfection attracts less demand and are therefore not as expensive as the others but are common and easy to find. 

The stones that are clear and colorless aren't the only ones with good quality, some naturally tinted ones too do fetch a great price. This price also ranges from how rare that particular color is and they give returns based on that too. A red diamond is the most naturally rare color. Other colors such as blue, pink, and yellow are also very rare but are thought of as great colors when investing in colored diamonds.

When buying a diamond as an investment you must make sure that your stone can retain its value over time. Just like you would manage a record of your company's stock, you must protect your diamond after buying it. A diamond that is not certified by the Gemological Institute of America should be tendered for certification. Find a certified and reputable gemological lab and take your diamond for a test. A certificate passed by the Gemological Institute of America is regarded as accurate in the gem market and will show the classification of the diamond, stating its properties and shortcomings. After you get your certificate, you may take it o an appraiser that will tell you the value of your gem. Whatever the appraiser tells you should be held in consideration over market values in future.

Take note to always keep your diamond clean. The jewelry that serves as it carrier should also be kept clean. Whenever you are to engage in a rigorous and rough activity, always endeavor to remove your diamond jewelry and keep it safe from harm's way. The fact that diamonds are classified as the hardest mineral does not mark them a target for immunity to destruction. If you hit your diamond too hard, it will produce a crack or even bits of it might fall out. Since diamonds can scratch each other, it is not advisable to store a whole lot of them together. Always store them separately. Also wear your diamonds alternatively, as wearing one every day will make if wear and depreciate. This damage will drag down its value. Even if a diamond that is cracked or broken can be reshaped or recut, it will decrease its value nevertheless. 

To sum it all up, diamonds are affected by demand, supply and the rarity of a diamond will increase its value over time. To make a diamond grow in value such a stone is to be cared for endlessly. Therefore, whoever invest in a diamond is absolutely smart.
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