ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Investing in Diamonds is Historically Profitable

Updated on June 15, 2011

Is Investing in Diamonds a Smart Move?

People with an eye on the future are always looking for a good investment, be it stocks and bonds, gold bullion, or real estate. But one area that has been historically profitable for investors is diamonds. You’ve all heard stories of people escaping war-torn countries by trading loose gemstones when the local currency went belly-up. Or you’ve seen the price that a costly collection can fetch at auctions or estate sales. The truth is, if you’re careful about what and when you buy, diamonds can be an excellent investment.

What to look for When Investing in Diamonds

One thing to think about when buying diamonds is style. This could include the cut, color, and setting of your stone. Princess cuts are popular now, but in ten years, it will be something else. Styles come and go, and occasionally they return, but where cut is concerned, sticking to a classic round-cut diamond (the staple of most solitaire settings) is probably your best bet. Ditto on color and setting. Simple and traditional is best, so choose a colorless stone (pink is popular, and may even be rare, but this doesn’t mean it will hold its value over time). If someone is going to be wearing the diamond, you’ll certainly want to get it set to suit their tastes, but be aware that the setting may be a detriment to resale. It will limit the scope of interested buyers and it certainly won’t improve your return, so if your objective in buying a diamond is purely as an asset, you may want to skip the setting altogether.

Additional Considerations

In terms of the value of a diamond, you should shy away from the biggest and best. In truth, you may not net the return you expect if you choose a rare stone. A more expensive diamond is going to be harder to sell in the long run, as the number of prospective buyers will be limited by cost. On the other hand, you may notice a reduced markup when you select a larger or more expensive diamond. And it is certainly easier to sell a single stone than a large collection since most buyers will either have to set or reset whatever they purchase.

So there are many considerations when thinking about investing in diamonds. Keep in mind that the value of luxury items like gemstones tends to fluctuate in accordance with inflation or recession, so you shouldn’t treat them the same way you would a stock, for example. Don’t buy today and expect to sell tomorrow. You’re going to enjoy a greater return over time, and treating a diamond as an heirloom may be wiser than counting on it for a windfall during a financial crisis. As long as you keep your goals realistic when it comes to acquiring diamonds, their capacity as an investment tool will almost certainly pay off.


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)