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How to Choose a Diamond
Investing in Diamonds
Diamonds are Great Investments
Buying stocks and bonds as investments will reward you financially in the long run. You can plot your earnings on a chart. You can plan ahead. You can add and withdraw funds just like having a bank account. But wait.... how fun is that?
Some people advance to investing in precious metals like gold, silver and platinum. While these metals are tangible, meaning you can hold them in your hands, they do not have much variation. Metal is metal. The way to make metal beautiful is to form it into shapes. However, those shapes do not necessarily enhance the value of metals.
Precious gems, on the other hand, have intrinsic beauty and are valued for this beauty. They come out of the earth with the power to amaze the viewer. Practically every precious stone is different. There are very few identical or near identical diamonds on the planet. Once a raw diamond is processed, the value of the diamond increases dramatically and it will hold that value for a very long time.
Diamond Investment - An Engagement or Wedding Ring
Tips on Choosing a Diamond
Most people are already aware of the "4 C's" of diamond comparisons. This is how a diamond is valued and priced. Each upgrade of one of the following affects the diamond investment:
- Cut - Diamonds are cut to enhance the way the natural prism of a diamond will reflect the light. Gemologists may study for many years to learn the basics of diamond cutting. The best cuts made by professional diamond cutters will increase the value and price of a diamond. Cuts refer to the measurements of each cut, not the final shape of the diamond. So, an 'emerald cut' may or may not be as valuable or more valuable than a 'diamond or round cut'.
- Color - Diamonds come in a variety of colors. The clear, white diamonds are the ones currently most sought after. Yellow, blue, pink, green and even black diamonds go in and out of style. Other colors exist and may may become a fad for a while. The best investment would be in a color or colorless diamond that stays in demand.
- Clarity - Clarity in a diamond denotes the lack of flaws or inclusions in a diamond's matrix. The carbon crystals are seldom pure, but some of them are near flawless. Some inclusions can be seen with the naked eye, but others must be identified with a loupe or a microscope.
- Carat Weight - This is the actual weight of a diamond and does not indicate the size of the stone. The weight of a diamond is determined by density. The densest crystals make for the hardest and weightiest diamonds.
Choosing an investment diamond means being aware of the cut, color, clarity and carat weight of these gems. All diamonds have value as they are the hardest crystal structures known to man and they have many industrial, private and commercial uses. Getting a good deal involves negotiating each of the four C's to get the best price.
Pricing a diamond and diamond prices are determined much like the fluctuations of gold pricing. A chart of current prices are consulted based on the four C's. For instance, a 1 carat, H color, VVS2 Clarity and Ideal Cut may be priced at $6,445 U.S.Dollars. The chart updates are known to jewelers worldwide and a sample may be found at Diamond prices.net.
These prices do not include graded diamonds by companies like the GIA, so the diamond prices are only a general idea of what any particular diamond is worth. Other things like the shape of a diamond and where it came from may come into play when determining the price of a diamond.
Choosing a Diamond Using the Four C's
Range - High to Low
Excellent to Poor
Good or Better
D to Z
D to J
Flawless to I-3
VS2 or higher
1 carat = 200 milligrams
1 carat or higher
Top Diamond Producing Countries
Current top diamond producer
Second largest producer
Number three in diamond producing countries
A surprise diamond producer at number four
Possible Blood Diamonds
Large diamond mines exist here
So far, the African continent produces the most diamonds of the world.
What does a natural or raw diamond look like?
How to Find a Diamond
In the great state of Arkansas, U.S.A. there is a natural diamond pipeline where diamonds are discovered daily. Hunting your own diamond is an excellent way to get into the rock collecting mania. A small entrance fee investment is all it takes to go hunt, find and keep your very own diamond.
Crater of Diamonds State Park is a great vacation destination that may even pay for itself! The park is open to the public and no commercial diamond mining takes place there now. It is every diamond hunter's dream.
The diamond field is 37.5 acres of plowed earth exposing an ancient volcano pipe. Many diamonds have been found here including a whopping 16.37 carat diamond found by a Texan in 1975. It was a valuable white diamond also.
Most diamonds are in the smaller point weight size. One hundred points equals one carat. But every diamond is special to someone or valuable as commercial diamond dust. So, happy hunting!
No investment in 100% safe. Do not invest invest without doing your homework. Any commodity can decrease in price. It is a gamble to think that all investments will be worth money in the future. Buy from reputable jewelers and get certified gems only.
Gemological Institute of America
- Gemological Institute Of America
The Gemological Institute of America, GIA, is the world's foremost authority in gemology, diamond grading, jewelry education, gemology research, diamond and gemstone grading reports and laboratory services. Gemological Institute of America : Gemology
© 2012 Lela