Does My Diamond Appreciate? (Some Do)

Diamonds are an investment. That is a true statement. However, the meaning of that saying can be a bit misleading.

Diamonds do appreciate. As a matter of fact, according to CNBC, some diamonds have appreciated 20% each year for the past 20 years.

That’s right. I said “some diamonds.” Unfortunately, it most likely does not include yours.

“1 in 50 Diamonds Will Likely Appreciate”

CEO of Diamond Cutters International, Fred Cuellar, stated that, “Only 1 of the 50 diamonds sold in 2010 will likely appreciate.” What makes that one stone different than the other diamonds? The simple answer is the rarity of that gem.

Like how most of the economy works, supply and demand determines value. Exclusivity of a gem drives up its value.  That is why the diamonds that appreciate most are the exotic ones that come in rare colors.

It’s hard to get, so we want it!

Wait, So We WANT Colored Diamonds?

When choosing our diamonds, we have been taught that colorless diamonds are the real deal.  And that is a pretty safe bet. However, these are the ones that are going to be worth the same price as you paid when you attempt to resell it.

However, it is important not to confuse this yellow with the very valuable canary-yellow diamond. They have a very high clarity rating. Combining such a strong score with its rare availability makes for a desirable appreciation value.

So STAY AWAY from THESE Colors

You Should Still Love Your Diamond

You should not feel disappointed about purchasing the diamond that you have. It may not grow in appreciation with each passing year, but it has not lost its value either. You can most likely sell your diamond for around the same price that you bought it.

Diamonds are like many other investments where the value fluctuates, but it is not as up and down as other common investments, such as gold. As long as you continue to care for your diamond, it is still a valuable asset to have.

Rare and exotic colored diamonds do appreciate, but it may not be worth the investment. Real estate and businesses may be a more wise way to spend your money. However, if you do love the beauty of these rare colors, you have nothing to lose by adding them to your vault of valuables.

Related Articles: