Diamond jewelry is beautiful, special, and something that will last a lifetime— but it’s also a good investment. Diamond jewelry, like many other physical commodities, tends to increase in price over time, regardless the state of the economy. That’s because, while the diamonds themselves are valuable, so are the precious metals used in fine jewelry. And if a piece of diamond jewelry is especially well-crafted or exceptionally beautifully designed, that can also increase the value of the piece over time.
Are you thinking of investing in diamond jewelry? Or wondering if some diamond jewelry is a better investment than the rest? Let’s take a look at the best diamond jewelry to invest in.
The Best Diamond Jewelry To Invest In
When it comes to investing in diamond jewelry, it’s important to consider what holds value best in the market, as well as what will be the easiest to sell.
So, first let’s consider what kind of jewelry holds its value exceptionally well. When it comes to the value of diamond jewelry, the value of the jewelry is all about the market perception. And what’s the one thing the jewelry market cares most about? Rarity.
More rare diamonds are considered more desirable, across the board. And the type of diamonds that are the rarest? Colored diamonds and exceptionally high-quality white diamonds. Naturally colored diamonds are incredibly rare, with red and blue diamonds being the rarest. But pink, orange, green, and yellow diamonds are also quite rare and are, therefore, highly desired.
When you’re considering the investment quality of diamond jewelry, you should also consider the metal it’s set in. Gold (white or yellow) and platinum are both excellent investments that tend to hold value well. So, as long as your diamond jewelry is made with these precious metals, this will add to the overall value of your jewelry.
Now we move onto the next part of the investment equation: how easy your jewelry will be to sell. We’ve already covered that rare diamonds hold their value well, but it’s important to also consider what the market wants. Consider buying rare diamonds with highly desired cuts, like round or cushion cut diamonds, rather than unusual, less popular cuts like the marquise. Make sure to get a good feel for what the market consistently likes when considering whether or not a piece of jewelry is the best investment.
One last note on buying jewelry: always, always make sure the jewelry you buy is certified. Don’t take a seller’s word for it that a diamond has a certain carat or color— only buy diamond jewelry that comes with GIA certification so you know the exact value of what you’re buying.
Diamond Jewelry Investment and Diversifying
As with any kind of investment, it’s important to diversify your diamond jewelry investments. Consider collecting different kinds of diamond jewelry (like both blue diamond jewelry and yellow diamond jewelry, for example) to protect yourself from market fluctuations.
Investing in diamond jewelry itself is also a good way to diversify your overall investment portfolio. Acquiring physical investments like diamonds and precious metals is a good way to protect yourself from the fluctuations in other investments you may have, like stocks. When your investment portfolio is diverse, you can hedge your bets against the unstable market and set yourself up for a higher rate of success.
FAQs
Diamond earrings may not hold their value in the same way that stocks or art pieces do, but they can still be a worthwhile investment.
Is diamond jewellery a good investment? ›
These precious gemstones were used as a great means of money transfer since a long time ago. A diamond trinket, no matter how small it is, costs double or triple compared to gold jewellery of the same size. This means diamond ornaments, whether it is diamond bangles or necklaces, make good investment options.
Are diamonds a good investment in 2023? ›
Zimnisky predicts the disruption in the supply of natural diamonds will be more significant in 2023, pushing up prices. Higher natural prices theoretically will benefit lab-grown diamonds, though that segment of the market is expected to face its own challenges this year.
Does diamond earrings have resale value? ›
A long answer to this question will take you through the basics of trading in (buying and selling) diamonds, but the answer will remain yes. However, the resale value of diamond jewellery or loose diamonds does not fluctuate like the price of gold. Instead, it depends on the demand and supply of these precious stones.
Are 2 carat diamond studs too big? ›
The most common carat weights for diamond stud earrings range from 0.25ct (small) to up to 1.5ct (large). Generally speaking, a 0.25ct diamond is considered very small or petite, a 0.50ct stone is considered medium-sized; and 1ct stones are considered sizable. Everything above 1ct is quite large and showy.
How much should I spend on diamond studs? ›
Fix a Budget
The price range of diamond earrings starts from $500 and goes up to $10,000 or higher. The price of 0.10 carat diamond studs ranges from $500 to $1,000. If you are planning to invest in 2.50 carat diamond studs, you have to pay anywhere between $13,000 and $15,000.
Are diamonds better than gold as an investment? ›
Investors may receive a good return on their gold investment in the long term. While gold will be worth around the same when you buy or sell it (plus a goldsmith's commission), a diamond ring would lose 80% of its value the moment you leave the store. Moreover, when selling diamonds, you have to contend with high fees.
Which jewellery is best for investment? ›
Jewellery can be considered an investment, but it's important to approach it with caution and consider several factors before viewing it solely as a financial investment. From an investment point of view, gold jewellery tends to be a more reliable and liquid investment compared to diamond jewellery.
What is the best diamond to invest in? ›
According to a well known diamond trade organization the ideal diamond for investment is a Round Brilliant from 1.01 to 1.49 carat, D-H in color and from IF (internally flawless) to VS2 (very slightly included) clarity.
Are diamonds losing their value? ›
But they're not an investor's favorite currently, with the precious gems losing some significant value over the last few months. Diamond prices are down 18% from their all-time highs in February 2022, and are lower 6.5% year-to-date, according to one Global Rough Diamond Price Index.
In the wholesale market, diamonds are priced per unit of weight, referred to as "per carat." Updated Saturday, July 1, 2023, diamond prices moved HIGHER by an average of 7.5% in June 2023. The average price per carat of all diamonds in our database was $10,449.78, down from $10,745.23 a month ago.
What time of year are diamonds cheaper? ›
It seems that November and December are the best times of the year to buy your best diamond. The sales keep going just before Cyber Monday and if you are eyeing an excellent diamond from a diamond company that offers good value, you can purchase your best choice of a diamond before it's gone.
What jewelry brand has the highest resale value? ›
Cartier jewelry sells for an average of 74% of the original price, making Cartier one of the brands with the highest resale value of all high-end jewelry brands.
How much are a pair of diamond earrings worth? ›
Diamond earrings typically start around $500 in price and can be as much as $36,000 for a single pair.
Do diamond earrings lose value? ›
With few exceptions, a diamond sold to its first buyer will experience a depreciation from its original purchase price, in the same way other luxury goods do. The profit was already made by the retailer in the original sale, which means the owner will inevitably sell it to someone else at a loss.
Is it OK to wear diamond earrings everyday? ›
Diamond studs are a jewelry box staple, they go with both formal and casual looks. You can wear this versatile piece of jewelry every day but make sure you remove them before taking a shower and while sleeping at night.
Are diamond studs classy? ›
Diamond studs are simple and elegant, something that anyone would love. Diamond earrings go with everything, and they are classy and timeless. They are a jewelry staple that will never go out of fashion. Shower someone you love in luxury with this gift that will leave them absolutely delighted.
What is the best diamond shape for studs? ›
Determining which are the best diamond earrings for you will most likely will depend on your face shape and your personal preference. However, generally, the most popular diamond cut for earrings is the princess cut.
