Besides traditional forms of investment, nowadays there are alternative ways to build wealth that have emerged. These alternatives include investing in diamond jewelry, something that pairs beauty with lasting value which can increase over time. Combining the joy that a beautiful piece of jewelry can bring with the idea of an investment sounds appealing but before you embark on such an investment, it’s a good idea to understand what makes diamonds the right investment.
What determines the value of a diamond
Investing in diamonds is the same as investing in anything else. The important thing is to first understand the area of investment thoroughly. When it comes to diamonds, the process used to assess the quality of diamonds uses an internationally recognized scale known as the 4Cs, which takes into account the four basic characteristics of diamonds:
- Carat (carat weight)
Generally, the larger the diamond, the more expensive it is. But it is not always the case that a larger diamond will necessarily be more expensive. Other parameters also matter.
- Cut
The cut determines how well a diamond reflects light. It enhances its sparkle, luster and overall brilliance. A poorly executed cut can in fact visually devalue even a very clear stone.
- Color
The color of clear diamonds is rated on a scale from D to G, with D being a designation for the most valuable, completely colorless stones. As the amount of color in a stone increases, the value of the diamond decreases. The exception to this is fancy diamonds–naturally colored stones that are very rare and valuable.
- Clarity
Another characteristic which is assessed is the quantity, size and visibility of any internal and surface defects that are called inclusions. The fewer the inclusions, the more valuable the diamond. Diamonds with no internal imperfections have the highest grade but these are extremely rare.
The final value of a diamond is always determined by a combination of these four factors. When choosing a specific stone, it is therefore worth looking for a balance between each of these factors so that the diamond not only looks good but also retains its value in the future.
How to recognize quality diamond jewelry
The quality of a diamond cannot be accurately assessed with the naked eye. Some jewelry is often set with stones that have a higher proportion of color impurities, but the way the ring is designed means that this may not be apparent at all. If the seller is transparent about this fact, then there is nothing wrong with that. The customer should always know exactly what they are about to buy and key to this is the certificate that should accompany every piece of diamond jewelry. It is issued by the Gemological Institute of America (GIA) and guarantees an accurate diamond rating according to international standards.
In addition to the stone itself, you should also focus on the design of the jewelry–its symmetry, precision of detail and its overall impression. Any diamonds in the jewelry should be set firmly and definitely shouldn’t be loose in any way. And you certainly won’t go wrong if you entrust your investment to a specialist jewelry store with extensive experience in jewelry making that guarantees the origin and quality of the stones it uses. At the Czech jewelry studio KLENOTA, experienced gemologists are in charge of selecting the best quality stones and you automatically receive a Certificate of Authenticity with each piece of jewelry. This outlines among other things, the type of metal used and its weight, information about any gemstones in the jewelry and the total weight of the jewelry. Each piece of diamond jewelry also comes with a certificate from an international laboratory.
What about lab diamonds?
Lab-created diamonds have become increasingly popular since in addition to their incredible quality, they also tempt due to their much lower price tag. Lab grown diamonds have the same chemical composition as natural ones but from an investment point of view, they don’t have a comparable value. This is because lab diamonds are not unique and can be produced in any quantity in a short amount of time. Natural diamonds, on the other hand, have been created over millions of years and each piece is a unique original. It is the uniqueness and limited natural resources that has kept the value of natural diamonds stable, and is likely to do so even into the future.
Taking care of diamond jewelry
Diamond jewelry is very durable and it does not require complicated care. You just need to follow a few basic rules which will ensure that the jewelry retains its brilliance and value even after many years. Keep diamond jewelry in a box separate from other jewelry to avoid scratching it. For the more valuable pieces, it’s also worth thinking about storing them in a home safe or bank safe deposit box, especially if you don’t wear them regularly.
The KLENOTA studio provides free cleaning on all jewelry purchased along with regular maintenance checks, where experts check the setting of any stones and the overall condition of the jewelry. This ensures that your jewelry remains in excellent condition and retains its aesthetic and investment value.
