The demand for loose diamonds is on the rise and for a good reason. Since the value of gold has been slowly but steadily decreasing, the use of diamonds as an investment has become the most sought after alternative.

Despite the surge of interest in diamonds for investment purposes, there are several factors you should consider if you intend to buy loose diamonds. When shopping for diamond jewelry in San Diego, you should know what determines the value of a diamond as well as what you can do to ensure your diamond keeps its worth.  

Is buying loose diamonds a good investment?

Loose diamonds have proven to be worthwhile financial hedging tools. Still, many people are hesitant to invest simply because they are not familiar with the benefits that buying diamonds for investment entails.  

Why loose diamonds are a good investment

The reasons why loose diamonds are a great alternative investment vehicle are manifold and actually quite obvious. They mostly revolve around the fact that they are a physical commodity that is tangible, small and worth a lot of money. So, if you are ready to invest, consider the following perks:

• Storing diamonds is extremely convenient. Their small size allows for excellent portability and storability since the smallest diamond can be worth double or triple compared to gold jewelry of the same size.  
• A diamond is the hardest substance found on Earth. This means that you can even mount and wear your investment as you can rest assured that nothing will happen to it as long as you take good care of it.   
• Diamonds are inflation-proof, much like gold, silver and other physical commodities. However, the portability and durability of a diamond gives it an edge over the other commodities.

Things to consider when buying diamonds for investment

Now that you are familiar with the benefits of buying diamonds for investment, you should learn how to shop wisely. Here are some things to keep in mind when shopping for loose diamonds for investment purposes:

• Although diamonds are easy to store, you have to make sure you have somewhere secure to keep them, such as a bank safety deposit or a home safe.
• Learn how to determine the value of a diamond. Familiarize yourself with the basics, i.e. the four Cs: clarity, cut, carat, and color.  
• Consider buying only loose diamonds. Yes, mounted diamonds are wearable, but a loose diamond is easier to evaluate and sell.  
• Buy natural colored diamonds. While colorless diamonds are great for gifts, pink, green, yellow or blue ones are better for investment purposes since they can be quite rare and desirable.
• Purchase only certified diamonds. Buy diamonds with certificates from the Gemological Institute of America to ensure you know exactly what you’re getting.

Do diamonds keep value?

Is a diamond forever? Well, it might be the hardest natural material, but the prices of diamonds have fluctuated considerably over the years as a reflection of supply and demand. That’s why it’s important to know how to determine a diamond’s worth.  

How to determine the value of a diamond

The most important factor for discerning a diamond’s worth is its rarity. The rarer a diamond is, the more valuable it is. Rarity and value can be determined by measuring the Four Cs, i.e. Color, Cut, Clarity and Carat Weight:

• Color: GIA’s color-grading system begins with D, which represents colorless diamonds, and ends with the letter Z, representing light yellow or brown hues. Although naturally colored diamonds are sought after, a chemically pure diamond is truly colorless and actually very rare and valuable.  
• Cut: this factor has to do with how well a diamond’s facets interact with light. Diamonds with great interaction with light, as well as symmetry, proportions and polish will naturally be deemed more valuable.
• Clarity: GIA’s clarity scale is divided into 11 clarity grades which range from Flawless to I3, the lowest grade. Although it’s extremely rare to find a perfectly pure diamond, the higher its clarity, the higher its value.
• Carat Weight: diamonds and gemstones are weighed in metric carats: one carat is equal to 200 milligrams or 0.2 grams. The value of a diamond increases with carat weight, but only if the other three Cs are considered.

What makes a diamond lose its value

When investing in and re-selling diamonds, you need to know how much you can get for your stone. Here are some factors to look out for since they can lower a diamonds value:

• Scratches and blemishes on the surface on the diamond
• A cloudy brown or yellowish color
• Small size and low carat weight
• Inclusions in the structure of the diamond, especially visible ones.
• Lack of rarity and remarkable characteristics  

If you want to ensure that your diamond stays valuable, there are several things you can do to prevent problems which can lower its worth. If you handle the diamond gently, avoid touching it too often and clean it regularly by soaking it in a gentle water and dish soap solution, you should be able to keep your diamond’s value for many years.    

Magnificent diamond jewelry San Diego adores

If you are looking for splendid loose diamonds and diamond jewelry in San Diego County, stop by Leo Hamel Fine Jewelers. From striking white to naturally colored diamonds of all shapes and sizes, our vast selection has something for everyone.

We are proud to offer the largest independent jewelry collection in San Diego, including wonderful vintage pieces, stunning engagement rings and eternity bands perfect for a birth present. Whatever the occasion, we are sure you’ll find the diamond of your dreams at Leo Hamel. Visit us today!