Are diamonds really 'forever'?
Diamonds are renowned to be showcase pieces. Believed to be tears cried by the gods, or splinters from falling stars by the ancient Greeks and Romans, they form deep within the Earth about 100 miles or so below its surface.
A unique combination of incredible heat and high pressure results in their beautiful and unique crystalline structure. Deep-seated volcanic eruptions then transport diamond-bearing rocks closer to the Earth's surface where they can be mined.
One of the many things that make diamonds so special is that they are unmatched in their beauty, radiance and hardness. In fact, diamonds have the highest hardness and thermal conductivity of any naturally-occurring material.
If you're looking to purchase the perfect diamond engagement ring or a set of diamond earrings, you've probably wondered if diamonds lose their value the moment you purchase them. The answer, like most diamonds, is multifaceted.
How And Where You Buy Diamonds Is Crucial
Different factors impact diamond pricing. Although diamonds have reigned supreme as a celebratory stone for centuries, diamond values have fluctuated dramatically in recent years.
That's partly due to the fact that, until recently, the diamond industry was dominated by mining conglomerates like De Beers, and the restricted supply kept prices high.
It's also due to improvements in technology. Lab created diamonds are starting to dominate the marketplace and advances in laser technology have made it easier to enhance diamonds' colour and clarity.
So the answer to 'how well do diamonds hold their value?' is, well, it depends on how much you pay for them and what type of diamonds they are.
Diamonds Are Not One-Size-Fits-All Investments
Like any other investment, diamond investing involves risks and rewards, and changeable market conditions.
If you're shopping for a diamond ring and want it to double as an investment item, then go for the best certificate and the strongest saturation of colour. The quality of a diamond has long been determined by the four 'C's: cut, colour, clarity, and carat.
If you use these to inform your diamond purchase, you'll most likely choose a high-quality stone for your budget that will hold its value unlike any other.
Always seek expert advice and make time to shop around, as high retail mark-ups can lead to significant losses on your behalf. If you're purchasing an item like a diamond engagement ring, make sure you can easily return it in case anything goes wrong.
Ultimately, diamonds can perform as an excellent medium to long-term physical commodity investment. However, it's important to understand that how much or how quickly they appreciate isn't something that can be guaranteed.
At Bevilles, We Know Beautiful Diamonds
Diamonds are not just a physical investment; they're an emotional investment. We understand the rare and timeless appeal of diamonds and offer competitive pricing so you can get the most out of your diamond purchases.
We maintain close partnerships with leading diamond suppliers and our processes comply with the Kimberly Process: an initiative designed to stem the flow of conflict diamonds.
As well as being ethically sourced, many of our expertly selected diamonds are viable options for a diversified portfolio or self-managed super fund. We understand that while diamonds are famous for their brilliance, most people want to get a brilliant stone for their money that will be attractive for resale or trading.
Contact our friendly team today to discuss diamond investing or learn more about our diverse diamond range at affordable prices.