Diamonds are very valuable rocks and can be very good investments since they offer greater security than many other forms of investment. The market trends and volatilities are important considerations but there are certain diamonds that depreciate insignificantly in value. The decrease in the supply of diamonds due to the exhaustion of diamond mines in the world increases the demand hence the value remains high.
There are many types of diamonds in the world but the large, colorless or fancy colored and flawless diamonds are quite rare. These are actually the investment grade diamonds. The best diamonds to invest in are the highly-priced rare rocks and they are defined by the 4Cs: cut, color, carat, and clarity.
The cut is the most essential factor to consider since it dictates the fire and the sparkle. It greatly influences the value, the beauty, and the depreciation rates. Diamonds are ranked as Excellent, Very Good, Good, Fair and Poor. You simply have to avoid the Fair and Poor grades when looking for investment diamonds. The excellent grade is the best and Very Good and Good quite acceptable.
The colorless diamonds are the best. The color is ranked between D-Z and the D grade signifies pure diamond with no color whereas Z means a lot of color. The best investments lie between D and H. The D grade has the highest value and appreciates within a relatively short period of time.
The fancy color diamonds are very rare and this makes them good investments although the other 3Cs need to be considered too. They are very scarce hence white diamonds are used more often. The higher the intensity of the fancy colors the higher the value of the diamond which makes it ideal for investment. They are graded as Fancy Deep, Fancy Dark, Fancy Vivid, Fancy Intense, Fancy, Fancy Light, Light, Very Light and Faint. The Light, Very Light and Faint grades have low value since they are regarded as low-quality white diamonds.
The black and brown diamonds are not fancy diamonds. The fancy colors also vary in value and rarity. The ranking in order of decreasing value is as follows:
Larger white diamonds have greater value. However, large white diamonds often have a lower value than small fancy colored diamonds. This factor is very vital in influencing the value of the diamond and the suitability for investment.
Clarity is not very important when purchasing diamond jewelry but it certainly is when buying investment diamonds. The flaws are normally invisible to the naked eye but they influence the value significantly. Clarity is graded as Flawless, Internally Flawless, Very Very Slightly Included or Very Slightly Included. The first two grades are the best for investment since they have the highest values and high rates of appreciation.
Purchasing investment diamonds requires more scrutiny than the normal jewelry diamonds. The highest quality diamonds are certainly the best investment diamonds due to value and appreciation.