Basics of Colored Diamond Investment, Diamond Investment

Colored Diamonds Investment 101

Colored Diamonds Investment 101

You’ve decided that diamond investment is right for you. Now comes the crucial step of choosing which diamonds to invest in. Let’s examine what factors you should take into account when purchasing your investment diamond.

Diamonds as an investment: The 6 key factors

Diamonds’ Rarity

Rarity is the most important principle when considering investing in colored diamonds. The rarer the stone is, the higher the return potential on it will be. The rarity factor will be addressed for every upcoming factor for consideration.

Fancy Colored Diamonds or Colorless Diamonds?

Colorless diamonds are found in nature 1000x more often than naturally colored diamonds, making colored diamonds considerably rarer and much more valuable.

We will continue to discover what makes a colored diamond more or less rare, thereby making it more or less valuable.

Diamond’s Color

Color is one of the factors with the most influence on the price of a fancy colored diamond. Although it is true that all fancy colored diamond are much more rare than colorless diamonds, there is also a big difference between the rarity of some fancy colors compared to others. For example, black, brown and yellow diamonds are found much more frequently in nature than blue, red and orange diamonds.

Are pink diamonds a good investment? and what about blue diamond investments? Click here for more info.

buying pink diamonds as investment

Diamond’s Intensity

Colored diamonds come in different intensities of color, ranging from faint to vivid. A stone with vivid intensity will be the most valuable, since diamonds with strong color are found very rarely in nature. The stronger the color, the rarer the diamond. When Considering colored diamonds as an investment though, you need to keep in mind, that a less rare (but still quite rare) light or mid colored diamond will be relatively more affordable.

Diamond’s Weight

Simply put, larger stones are much rarer than smaller stones. As the carat weight of a diamond goes up, so will the value and price.

Fancy Diamond’s shape

There are certain shapes that are considered more desirable than others. Rounds, princess cuts and emerald cuts have the highest value.  It is much harder to achieve the best results for the color of the diamond(learn more about how diamond cut relates to the color) in those particular shapes, therefore a properly cut round, princess or emerald cut colored diamond will not be found very often, making one very valuable. Easier cuts for colored diamonds will be slightly less valuable.

COLORED DIAMONDS INVESTMENT TIP

Aside from considering all of the above factors individually, it is always important to consider how these factors interplay for a given fancy colored diamond. For example, a stone with the rarest shape but a more common color will still be less valuable than a stone with a more typical shape and a very rare color. A very large diamond of a relatively common color may be worth more than a very small diamond with a very rare color, or not.

As you can see, every single fancy colored diamond is unique and the consideration of characteristics for each one is unique in order to determine its value. For this reason, we highly recommend doing the extensive research yourself and then consulting an expert before investing in a fancy colored diamond. 

For further information and expert advice contact Asteria Diamonds.

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