Are Diamonds A Good Investment?

Are Diamonds a Good Investment?

Diamonds are just as alluring as they are expensive. For thousands of years, these gems have symbolized prestige and wealth. As new mines were discovered in the 1970s, demand increased, but sales really took off in the 1980s with a famous DeBeers marketing campaign. These days, diamonds are more than a girl’s best friend; they’re a viable investment in many cases. Here, you’ll learn more about investing in diamonds.

Benefits and Disadvantages of Diamond Investing

Diamonds are fast becoming a popular investment option, and the commodity is desirable for several reasons. Diamonds take up little space and can easily be stored. Unlike works of fine art and gold bars, diamonds are tiny and typically hold more value than other collectibles. Diamonds are earth’s hardest substance, which means they’re incredibly durable. If they’re safely stored and not misplaced, they’ll stay in perfect condition.

Like other investment options, diamond investing carries some risks. Unlike gold, there’s no price index for these gems. Rather, they’re individually valued using GIA (Gemological Institute of America) criteria. Diamond pricing is dependent on supply and demand, which are heavily controlled by major manufacturers. It’s easy to pay too much and lose money when it’s time to sell. Diamonds don’t make very good short-term investments, and you’ll have to wait for them to increase in value.

Tips for Successful Diamond Investing

Now that you’ve learned the pros and cons of diamond investing, here are a few easy tips for success.

  • Learn the basics: Like other major purchases, diamond investing involves significant research. At a minimum, a buyer should know the 4 C’s of diamond grading: cut, color, carat, and clarity. With this knowledge, it’s less likely that you’ll be overcharged.
  • Set a budget: It’s best to have a number in mind before shopping, and diamond investing is no exception. It pays to have a diverse portfolio, and diamonds shouldn’t be your sole investment.
  • Compare stones: When buying diamonds for investment purposes, it’s best not to buy common stones. For instance, a one-carat VS (very slightly included) stone won’t produce a very high return in the future. However, rarer stones, such as pink and blue diamonds, are much easier to resell. Popular shapes, such as round brilliant and cushion cuts, also have higher resale values. When investing in diamonds, buy only those that are certified by the GIA, as uncertified stones are much harder to sell.
  • Set realistic expectations: If you’re searching for fast riches, diamonds aren’t the right investment choice. They appreciate slowly, and short-term investors should focus on other products. It may take time for a diamond to increase in value, but in the meantime, it’s safe to enjoy the investment.

With these tips and some basic investment knowledge, it’s possible to safely invest in diamonds.


Just like other investments, buying diamonds comes with benefits and drawbacks.  It’s best to seek professional advice and make an informed decision before investing in diamonds.

If you would like to learn more about diamond investing give us a call at at 858-737-4862 or contact us online at  You can also click here to browse our catalog.