By Indra Jhaveri and
Carlo Calescibetta, G.G.
They say diamonds are a girl’s best friend, but what is it that makes them so attractive? Most people find the glitter, flash and rainbow dispersion of colors fascinating, while a diamond’s rarity and value have their own allure. With the advent of the internet, the consumer has access to an unprecedented level of information about diamonds, diamond qualities, prices and availability. But what’s true and what isn’t? Let’s set the record straight.
The appearance of a diamond results from its unique chemical composition and it’s journey through the high pressure, high temperature environment in which it grows. These beautiful crystals of carbon, when mined and given the high quality cutting and shaping they deserve, capture, refract and reflect light in a way that borders on the hypnotic.
The value of diamonds tends to increase steadily. Using diamonds for investment purposes is not a new concept. Stocks and bonds, gold, silver and real estate all have in common the possibility that their value will increase over time. This possibility makes them reasonable investments. When purchased through a reliable broker at below wholesale costs, the probability of value enhancement is high.
The G.I.A. diamond grading system has helped standardize objective grading standards and nomenclature worldwide. The G.I.A. diamond grading certificate is the go-to standard in the industry. Diamonds can be laser inscribed with the certificate number to assure authenticity. This gives purchasers confidence in the accepted quality of a diamond, as well as establishing a provenance. The Kimberley process has helped ensure that diamonds are sourced responsibly from “non-conflict” sources. With the advent of the internet, customers also have nearly limitless access to information about diamonds, diamond cutting, quality and availability as well as information about marketability and re-selling potential. New scanning software can even allow an individual a three-dimensional and/or 360-degree view of many of the stones listed online.
Still, nothing compares to holding a stone, observing for one’s self the flash and scintillation of a well-cut stone. A trusted and reliable broker can source stones and guide an investor to a diamond that will bring the maximum return on investment. With proper sourcing, quality investment diamonds can be procured directly from the source at a minimal margin to insure the maximum return on any investment stone.
Whether in small sizes or large, this combination of beauty and rarity makes for a unique investment potential; an investment whose value grows over time while being a wearable display of wealth and beauty. There are standards of beauty and quality that are perceived as “ideals” for investment purposes. In general, larger, cleaner stones in the D, E, F color range were once considered the ‘Rolls Royce’ of investment commodities; but now, any diamond when procured at the right price with (G.I.A.) certification has the potential to grow in value. The American market tends to run in the SI2 – VS1 clarity range and from G – J colors but even darker colors that do not yet reach the “fancy color” designation have value and appeal.
One of the major improvements in the past couple of decades is the quality of cutting. Formerly, the retention of weight was the main focus of cutting, resulting in many stones that were too deep or too shallow and which allowed light to leak out causing stones to appear dark inside. With a well-cut stone, light that enters through the top of the stone (the crown), bounces around inside and then back out through the crown. This results in the rainbow colors we see (dispersion) while the light reflected from the facets causes the flash and glitter. To the discerning eye, the difference between a well-cut and a poorly cut stone can be seen from across the room.
With your local expert, your exact needs can be individually accommodated. With the necessary experience and a discerning eye towards value, a savvy broker can assist you in finding the perfect investment stone or piece of jewelry to fit your needs and desires. We’d love to answer any questions you may have. Reach Indra at [email protected] or call 602-923-8200 or 602-432-2920. For more information, visit AMIDiamondsandJewelry.com.
