Diamonds are extremely valuable assets. The idea of holding this “work of art” being forged by the forces of mother earth right beneath our feet, gives off an exhilarating feeling of uniqueness that not many things compare. With its beauty that it brings to the table, diamonds demand value as well! This is why they make for excellent long-term investments!
True, that trend and volatility of the market can increase or depreciate the value of these stone, but there isn’t an inch of doubt of whether these are worth the risk! The diminishing supply of diamonds is also another reason why demand for them won’t be going anywhere.
There are diamonds of different grading and colours but one that stands at the helm is the large, colourless or fancy coloured flawless diamond. But how should you decide whether a diamond is investment grade or not? The 4C’c of course!
The 4C’s
These stand for Cut, colour, clarity and carat. Let us look into these further and how they determine the investment grade of a diamond.
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Cut
The cut of a diamond is by far one of the most important of the 4C’s. It lies entirely on the skill, experience and craftsmanship of the gemmologist. It is the cut that determines the sparkle and brilliance of the diamond. You need to be able to see this shimmer from a mile away! It is the grade that shapes its value and its depreciation rates.
Based on quality of cut, they are graded as Excellent, very good, good, fair and poor. Make sure to stay clear of the fair and poor grade cuts of diamond. The excellent grade is premium. The good is acceptable.
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Colour
Colourless white diamonds are the most sought after. They are ranked from D to Z, with the D grade signifying white colourless diamonds and onwards to Z having strong colour or pigmentation. D to H is the sweet spot!
Apart from colourless diamonds, fancy colour diamonds are also in high demand! These are very rare. Simple rule of thumbs say, stronger the intensity of colour, higher is the value and investment grade. They are graded as Fancy deep, Fancy dark, Fancy vivid, Fancy intense, Fancy, Fancy light, light, very light and faint. Fancy deep has the highest value and faint the lowest. Black and brown diamonds aren’t considered fancy diamonds.
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Carat
Larger the white diamond, higher the value. This factor is important to influence cost and its investment grading.
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Clarity
It is important in lieu of investment diamonds, but not so much for diamond jewellery. More the number of visible flaws lower the clarity. Clarity is graded as Flawless, Internally Flawless, Very Very Slightly Included and Very Slightly Included. Flawless diamond rings make for the best investment!