Investing in lab-grown diamonds has grown rapidly over the last few years. Diamonds, as a valuable commodity, have been used as a tremendous means of transfer. Considering that such a small item can be worth an investment is amazing.
The truth is as small as a piece of diamond is, a million-dollar piece of it can be kept in a very small safe. It is useless to think that anything would happen to a piece of the diamond because of its hardness quality. So, all that’s properly needed to be done is to ensure that it doesn’t go missing.
Reasons why you should invest in lab-grown diamonds
Investments on Real estate, silver, diamonds, and gold typically appreciate in agreement to inflation. Diamonds are portably to move around and valuable, unlike other gems. This sole reason as an alternative to saving some money will make an individual want to invest in the buying of diamonds. You can enjoy it while you have it. Aside from the physical attraction quality piece of diamond wears, there is also a financially beneficial reason why a lab-grown diamond should be invested in.
Currently, the total value of lab-grown diamonds, as estimated, is around $150 million annually. And business growth statistics have it that value of diamonds will exceed $1 billion in just a few years to come. Jewelry businesses will undergo higher demand in a few years to come, not the diamond investment industry.
An element that has been considered for investment in diamonds is resale worth and liquidity. At present, lab-grown diamonds have no resale market, and in, it is needless to have one. Having a resale market for diamond investment value isn’t necessary because, if a jeweler wants to do a resale of his lab-grown diamond, there is every likelihood that by the time new diamonds would have been produced at a much lesser cost. Therefore, no one would prefer to buy a resale diamond when he or she can actually buy a new lab-grown diamond at a cheaper cost.
The truth is that going by beliefs of disparities between lab-grown diamonds and mined diamonds, and some investors will mostly prefer to have mined or natural diamonds in their portfolios. Normally, jewelry lovers, most especially people who buy diamond engagement rings, they do not make inquiries on if or if not they can insure their jewelry. And this is a very valid question that doesn’t come to the minds of those that buy diamonds. Going about ways of insuring your lab-diamond has no right or wrong way about it, but with a little attentiveness, it will be surprising to you to know why you should consider insuring your lab-grown diamonds.
Comparison of lab-grown diamonds and mined diamonds
Price comparison is key as a factor to consider when investing in diamonds. It is clear that a diamond is not a stock. Therefore, the price cannot be defined as fixed by hundreds and thousands of jewelers and customers bidding online on a translucent platform. However, with the enormous online sellers, asking for prices and comparing them can be achievable.
However, it could be difficult in terms of colored diamonds. With a special colored lab-grown diamond, for instance, if you are dealing with a pink diamond or a yellow diamond, you clearly are on your own. Nonetheless, selling a piece of diamond is considered much easier than selling a marquise. It is advisable to buy diamonds, particularly with the GIA certificate.
How the investments work?
To start with, if you want to invest in lab-grown diamonds, it is imperative that you learn and understand the basics which start with the 4cs. Setting a budget for how much you want to invest should be kept in mind. Another thing is to understand that diversification helps to safeguard you against ignorance Warren Buffett.
For instance, if you earlier planned on investing $40,000 on a lab-grown diamond, then you should consider buying 2 x $20,000 diamonds or even split it into three where there is an even sharing ratio. After this, buying different colors of diamonds will be best instead of buying one of the same types. This will help taking you off the risk side as the price of each of the colors might unprecedentedly rise or fall.
Another way of ensuring a good investment strategy is to buy a lab-grown diamond at a price cheaper than you will sell it. When a piece of diamond is gotten from a retailer, it means that you have gone through a number of brokers and mediators who must have gotten their shares respective.
Buying a diamond cheap doesn’t mean you buy it cheap literally. Buying a lab-grown diamond cheap simply means buying as high up the chain of a bargain if possible. Mediators and brokers can be avoided by directly buying from manufacturers. In recent times, lab-grown diamond manufacturers now manage online stores through which they directly sell to customers
If it will take asking so many questions just to get a good bargain, then it is essential. Making inquiries from lab diamond experts and consultants will be a wise thing to do. Forums on social media that discuss and give updates about the diamond market can be helpful too. What are The main Dis-advantages and Risks of Investing in Diamonds?
However, a few risks are involved when it comes to diamond investment. Unlike other merchandise like silver and gold that have a price index, which makes it possible to check stock exchanges and follow them, diamonds do not have! Although most diamond dealers rely on the Rapaport price. This is not sufficient on its own. The catalog is treated as a standard; therefore, when used, it just won’t really matter. The catalog only conveys basic factors like carat weight, color, and clarity.
Eventually, prices are controlled by the market for every demand and supply. Dealers can buy a piece of diamond higher to the price list and could also be lower it. A 5% alteration means a lot. Likewise, only white-colored lab-grown diamonds are classified in this catalog because, at present, colored diamonds do not have a catalog.