About 40 years ago, fancy blue diamonds began to increase in value. In five year increments they increased by 100 per cent. In six to seven year increments, natural fancy pink ones have doubled in value. The fancy yellow stones have doubled in value as well. They join their clear counterparts as a potential investment. Investing in Diamonds follows trends.
As the economy fluctuates, so does the their value. The colored gem stones are very rare and their price is always increasing. But, that is not the only reason investors are interested in buying them.
One reason for the interest is that most countries do not require their value to be reported for tax purposes. They are compact and easy to keep. The jewelers are the ones who own most of the colored stones, and most of them are not eager to sell.
To exemplify their rarity, when 10,000 carats of diamonds are mined, the portion that are colored make up one per cent. The chocolate stones are quite popular at this time. The colors that are most rare are the red, green, violet and blue.
There are two ways to invest. The investor can buy stock in a company that mines them. Alternatively, he or she can buy the actual gem stones. Colored ones are not always available, however. Their exceptional beauty for the purpose of making jewelry makes them high cost and hard to find.
As is true with many investments there are some drawbacks. If you have a need to liquidate assets, they are not something you can sell quickly. An expert must evaluate their worth before they are ready to sell.
Gold and silver, for example, are easily sold since they each have a fixed price based on weight. With the jewels there are many more factors to consider, such as clarity of the stone for one example. It requires an expert to estimate the value of each stone.
The stones are valued according to numerous qualities. Two stones that are of equal carat weight might have higher or lower price tags. Gems must be evaluated based on many factors. It takes experience to gauge the value of a diamond.
The experts in the field, that is the jewelers, have tried to create a method to make investing in Diamonds a more practical endeavor. Any pricing scale is made difficult by the widely separated variables intrinsic to the jewels. Some of them are purchased to sparkle on a piece of jewelry. Others are only used as glass cutting tools. One can only imagine the vast difference in beauty and quality of those two classes of the stone.
Investment Diamond Exchange (IDX) provides investors with the lowest polished diamond prices in the industry. To inquire about how to invest in diamonds, simply visit IDX and a representative will educate you.
