Investing In Diamonds Can Be A Profitable Venture
Fancy blue diamonds have become much more valuable within the last four decades. In fact, they are 100 per cent more valuable. The ones named fancy pink double in cost in seven year increments. The same is true of the fancy yellow stones. Investing in Diamonds seems to follow trends in jewelry. These colored gems have become better investments than their clear counterparts.
They increase and decrease in value in response to the economy. The colored ones are rare and for that reason continue to grow in price. However, that is not the sole reason for an investor to take interest in buying the colored variety.
The majority of countries around the world have no legal requirement for them to be reported and taxed. Also, they are compact and require a small amount of space to store. Most of the rarest colored stones are owned by jewelers. They are not inclined to sell them very often.
To clarify how rare they are, out of mining 10,000 carats of diamonds, colored stones make up only one carat. Some colors are pricier than others. While the currently popular brown, also called chocolate, are only modestly rare, the red, green, violet and blue are considered extremely rare.
There are two directions the investor can take. She or he has the opportunity to buy stock in one of the mining companies. As an alternative, the actual jewels can be bought. The colored stones, being rare, are difficult to find for sale.
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.
While gold and silver can be quickly sold because the price is fixed depending on weight, there are many other factors besides carats that the price of a diamond is dependent on. One stone might be clearer or brighter than another. Only an expert, mainly a jeweler, can correctly identify the value of one of these precious gems.
Value depends on multiple factors. Different values can be placed on two gems of the same carat weight. It is not like selling silver or gold where the price fluctuates, but remains stable according to weight. Weight and size are not the only features that fluctuate from stone to stone.
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.
They increase and decrease in value in response to the economy. The colored ones are rare and for that reason continue to grow in price. However, that is not the sole reason for an investor to take interest in buying the colored variety.
The majority of countries around the world have no legal requirement for them to be reported and taxed. Also, they are compact and require a small amount of space to store. Most of the rarest colored stones are owned by jewelers. They are not inclined to sell them very often.
To clarify how rare they are, out of mining 10,000 carats of diamonds, colored stones make up only one carat. Some colors are pricier than others. While the currently popular brown, also called chocolate, are only modestly rare, the red, green, violet and blue are considered extremely rare.
There are two directions the investor can take. She or he has the opportunity to buy stock in one of the mining companies. As an alternative, the actual jewels can be bought. The colored stones, being rare, are difficult to find for sale.
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.
While gold and silver can be quickly sold because the price is fixed depending on weight, there are many other factors besides carats that the price of a diamond is dependent on. One stone might be clearer or brighter than another. Only an expert, mainly a jeweler, can correctly identify the value of one of these precious gems.
Value depends on multiple factors. Different values can be placed on two gems of the same carat weight. It is not like selling silver or gold where the price fluctuates, but remains stable according to weight. Weight and size are not the only features that fluctuate from stone to stone.
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.
About the Author:
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.
posted by Vittoria @ August 04, 2013
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