How To Buy An Investment Diamond

Monday, March 1, 2021 12:41:00 AM America/Los_Angeles

At Hadar Diamonds, we are often asked how to buy an investment diamond and what it will cost. Although we are not investment advisors, nor do we offer investment advice, we do have our fingers on the pulse of this market.

In current market conditions, an investment grade diamond will have the following characteristics:

1)  Clarity of VS2 or higher

2)  Colors within the range of D-H

3)  1.00+ carat size

4)  GIA certification

5)  Triple Excellent, very good rating (cut, polish, symmetry)

For many, a diamond of investment grade falls outside the price range for most people.  For buyers with budgets under $20k who are looking for investment quality combined with a symbol of love and devotion, we recommend without reservation, diamonds with VS2+ grades, D-H colored diamonds. 

For buyers who wish to have a diamond that will serve as a long-term hard asset and increase in value, we suggest considering diamonds with investment grade characteristics as discussed above.

Why should you invest in diamonds?

Now more than ever this discussion is becoming a hot topic—DeBeer's announced that diamond prices will rise due to demand.

(See article:  http://www.theguardian.com/business/2014/sep/17/de-beers-rise-diamond-price-stones-rarer

Bloomberg reported in May, 2014, that diamond prices will increase 5% each year

(See article: http://www.bloomberg.com/news/2014-05-07/de-beers-plans-higher-prices-as-anglo-pushes-for-returns.html).

With this information, we can expect that ALL diamond prices will rise.  So, if you have ever wanted to own a diamond with investment grade characteristics, or any diamond for that matter, it may be a good idea to buy before the projected prices increase.

Diamonds also have a track record of increasing in value more than stocks!  In the past 100 years, there were only 20 years when the price of diamonds stayed the same or decreased.  They increased in value the remaining 80.

In addition, diamonds are a stable commodity and aren't subject to inflation.  A diamond holds its worth no matter what the current value of the US dollar is or even what country the owner is in.  Compared to stocks and other popular forms of investment, diamonds are a truly portable asset - they hold value across borders and even continents.

These unique properties have given the diamond a special role throughout history.  During World War II, Jews and other groups targeted by Nazi Germany fled the country with diamonds - as they knew the diamonds would always hold value in whatever country they could seek asylum in.

So how do you buy an investment grade diamond engagement ring?

1)  Find a diamond supplier you trust, and usually one who has low overheads.  This is often found with online retailers, as they do not incur costs such as leasing a brick-and-mortar location, and associated security and insurance costs.

2)  Determine your budget. 

3)  Ask your diamond supplier to work within your budget to locate a diamond with investment grade characteristics.

4)  Find an engagement ring setting.  Many beautiful diamond engagement ring settings can be had for under $3k.  Often, suppliers with ownership or association with custom ring design houses will offer discounts on the diamond when you purchase the ring too.

Cutting to the chase...

A few options follow.  Note: Prices posted September 2014 and are subject to change.

The Diamond

D, Internally Flawless

$26,882 |  1.14 ct., D color, Internally Flawless, Triple Excellent, No Fluorescence, GIA Certified

$16,762 |  1.04 ct., D color, Internally Flawless, Triple Excellent, No Fluorescence, GIA Certified, natural HPHT diamond (Type 2a)  LINK:  https://www.hadardiamonds.com/gerry-1-04-http.html

E, Internally Flawless

$17,816 |   1.14 ct., E color, Internally Flawless, Triple Excellent, No Fluorescence, GIA Certified

E, VVS1

$16,545  |  1.05 ct., E color, VVS1, Triple Excellent, No Fluorescence, GIA Certified

$89,999  |  4.33 ct., E color, VVS1, Triple Excellent, No Flourescence, GIA Certified, natural HPHT diamond (Type 2a)

The Ring

$385 |  18KW Gold Traditional-Style Solitaire, inspired by top ring designers

$780 |  Platinum Traditional-Style Solitaire, inspired by top ring designers

$3,350 |  14KW Gold Audrey Engagement Ring.  Hand engraved with .76 ctw side diamonds

"The more you know...
the less you pay."
 

If you're interested in taking advantage of diamond investing, contact Gerry of Hadar Diamonds at Gerry@hadardiamonds.com or via phone at 619-572-8100.

Gerry is a member of the prestigious New York Diamond Dealers Club (the NYSE for diamonds) and has been involved in diamond investing since 1978.  Since then, he has helped thousands of clients buy and sell close to the cash market and has liquidated millions of dollars worth of diamonds at "The Club."

Posted in Articles By

Gerry Hauser