Are Diamond Necklaces Worth the Investment?

When you think of diamonds, what comes to your mind first?

The sparkle and the grandeur of it all, probably! Or do you remember historic jewellery pieces like the Dresden Green, the Hope Diamond, or the L’Incomparable Diamond?

But beyond the brilliance of diamonds, have you ever considered it as an investment like gold? People usually buy diamond jewellery for its beauty. Wearing diamond jewellery has been a status symbol from the Middle Ages onwards and it used to be exclusive to royalty and the ultra-rich. But now, diamonds are accessible and affordable for normal people too. Let's delve into whether diamonds can be a worthwhile investment and the factors to consider when investing in them.

But before that, we should know a little more about diamonds.

What are diamonds?

Before making any investment, it is crucial to fully understand what we are investing in. Diamond is a form of carbon, arranged in the diamond cubic crystal structure. Among all natural materials, diamond possesses the highest hardness and thermal conductivity; In other words, diamonds are one of the strongest materials found on earth.

The extremely rigid arrangement of atoms in diamonds narrows down the type of impurities that could contaminate diamonds to meagre. Diamonds with small amounts of impurities in nature appear as coloured diamonds!

 What makes diamonds desirable apart from their unparalleled beauty is their rarity. The calibre of a diamond is determined by the four C’s. cut, colour, clarity, and carat are the defining qualities of a diamond. Other features, such as the fluorescence, certificate, etc, can also influence the cost of diamonds. As for diamond ornaments like necklaces and rings, the history of the piece, previous owners, and the age of the piece also will have a huge influence on its cost.
 

Investing in diamonds

“Is it worth investing in diamonds?” is the question. And the answer depends on what kind of investment you are planning on! If you are hoping to buy and immediately sell a piece, this is not the right place for you. The prediction of future diamond prices is not very easy, especially considering the very transparent gold prices and market trends, compared to the obscurity surrounding the diamond prices and trends.

We should also consider the global economy. The strengths and weaknesses of the global economy are volatile. Some experts believe diamonds could be an excellent investment for the future. But ultimately, the decision depends solely on the personal preferences and investment goals of the investor.

Now, we will discuss the pros and cons of investing in diamonds.

The pros of investing in diamonds

Stability: The popularity of diamond jewellery has been skyrocketing in the last few years in the Indian market. The value of physical assets like gold, silver, diamond, and other precious stones increases over time. Diamond prices are also known to be resistant to market fluctuations and inflation. Diamond is a timeless investment. So if you are looking for a long-term investment, then look no further!

Durability: The durability of a diamond is a key factor to consider when investing in diamonds. While the value of a diamond may increase over time, the diamond itself will not depreciate. Diamond is one the strongest materials on earth, so as long as you take good care of it, you can wear your investment without the worry of damaging it. You can also insure your jewellery if you are worried about losing it somewhere.

Easily portable: Diamonds are portable and easy to store,compared to gold. Selling gold bullion is also a complicated process. In contrast, diamonds, even though small in size, have to offer more value despite their size.

Liquidity: Even though there are no public trading platforms,diamonds are still a great investment option. Diamonds are liquid assets, but their liquidity depends on their certification and segment. Commercially graded diamonds are easier and quicker to sell at a good price compared to rare diamonds because they have a wider market. So you can decide to invest according to how you wanna sell your diamonds in the future.

Emotional value: Diamond ornaments hold great emotional value; In fact, the iconic diamonds we know are famous because of the stories attached to those pieces. Diamond ornaments could be passed on from generation to generation and acquire their own stories.

The cons of investing in diamonds

Regardless of the many benefits diamond jewellery has some drawbacks as an investment too. Firstly, there is a lack of price transparency, as the value of diamonds depends on market demand. Secondly, selling diamonds can be challenging, and you may have to accept a lower price than what you paid for them, especially if you try to sell the piece immediately after buying it. Lastly, diamond investments require patience, as they are not suitable for short-term investments.

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RAJAKUMARI GOLD & DIAMONDS with over 25 years of experience in the craft, is one of the most promising Diamond Jewellers in Kerala. The exquisite Kerala Wedding Jewellery collection at Rajakumari is something you shouldn't miss exploring if you are searching for the perfect set to wear on your special day! Gold and diamond jewellery goes beyond the heavenly grandeur and elegance; Jewellery is also a solid investment! We welcome you to Rajakumari to find the jewels of your dreams!