Purchasing a colorless diamond as an investment can be a tricky
business. You must focus on the cut, clarity, carat weight, and shape to make the best choice. Focus on how the diamond compares across the entire
spectrum of the GIA scale. A diamond may be colorless but not sparkling because
of the visible inclusions and would therefore be a bad choice for an investment.
As you
should have realized, the process is certainly a lot more tedious than buying
an engagement ring. Another important key to making a wise choice is knowing
current market trends. For example, research indicates that in 2016, smaller
diamonds were in greater demand than larger diamonds. 1ct. diamonds have
remained the most popular size diamonds. Anticipate how these kinds of trends
will affect the supply and demand and, ultimately, the price of the diamond.
The shape
of the diamond is not one of the four Cs, but it certainly does have a bearing
on your investment. While we are all entitled to our preferences, brilliant
round diamonds are the safest choice for an investor. More intricate shapes,
such as square and princess-cut diamonds, tend to be more expensive since the
jeweler would have cut away and essentially wasted some of the diamond to
achieve that shape. Purchasing a round diamond ensures that you get more value
for money.
While
investors may have access to a larger pool of funds, they, too, may have
concerns about the price of the diamond. After all, clever wholesalers and
retailers are entitled to putting a markup on the price of the diamond. The
Rapaport Price List was thus invented to help protect buyers.
The Rapaport Price List
The
Rapaport Price List is an international benchmark to determine the price of any
diamond. Its size and clarity determine the price of each diamond and, of
course, its color. What is unique about this list is that it is updated weekly to
keep up with current market fluctuations.
Before
the invention of this list, a buyer was completely at the seller’s mercy. Now,
armed with this list, buyers have a much clearer understanding of the actual
value of the diamond and can easily determine whether the salesperson has put
an exorbitant markup on the cost of the diamond.
When in
doubt, feel free to walk away and consider other options. In recent times, the
Rapaport Price List has been made available online. It would be wise to
download this list and take it with you as you purchase. Just ensure that you
download the latest version of the list.
Once you
have identified the diamond that offers the best value for the right price,
insist on seeing the GIA certificate. A diamond is a huge investment that
should not be taken lightly. Many diamond sales representatives are dishonest
and try to pass off fake diamond simulations as real diamonds. Plus, once you
are ready to sell the diamond you’ve purchased, you will be asked to
present the GIA certificate.
By now,
it should be clear that the color of the diamond should not be the only factor
that motivates your choice. If you are an investor, it is safe to say that you
need to consider these three factors to make a wise choice:
1. The
GIA certification
2. The
cost compared to the Rapaport Price List
3. The four
Cs