When you buy a diamond, you’re not just buying a piece of jewellery; you’re investing in a stone that has the potential to appreciate over time. But not all diamonds are created equal, and some will rise in value faster than others. So, how can you ensure you get the most out of your diamond purchase?
Which type of diamond gains in value the fastest? It’s a common question that requires an expert answer. Diamond engagement rings are typically priced for their size, which means the larger the carat, the higher the price. So you might have heard that cut, clarity, carat and colour all contribute to a diamond’s value, but is it true?
Which diamond?
If you’re looking to invest in a diamond, you may wonder which one will grow in value faster. The answer depends on a few factors, including the type of diamond, its quality, and its size.
Type of diamond:
The two most popular diamonds are round and fancy-shaped. Round diamonds hold their value better than fancy-shaped diamonds, so a round diamond is the better option if you’re looking to invest.
Quality:
When it comes to quality, the “4 Cs” are key: carat weight, colour, clarity, and cut. The higher the quality in each category, the more valuable the diamond will be.
Size:
Generally speaking, larger diamonds are more valuable than smaller ones. But remember that a large diamond with poor quality will be worth less than a smaller diamond with excellent quality.
So, which diamond is best for investment purposes? It depends on your specific goals and budget. If you’re looking for a diamond that will appreciate over time, choose one that is high quality and well-cut—regardless of whether it’s round or fancy-shaped. And if the size is important to you, opt for a larger stone as long as it doesn’t sacrifice quality.
Determining the value of a diamond
The value of a diamond is determined by its cut, colour, clarity and carat weight. The most important factor in determining the value of a diamond is its cut. The better the cut, the more valuable the diamond. The second most important factor in determining the value of a diamond is its colour — the more rare and intense the colour, the more valuable the diamond. The third most important factor in determining the value of a diamond is its carat weight; the larger the carat weight, the more valuable the diamond.
Well-cut diamonds will always be in demand, so they tend to hold their value well over time.
Cut
When it comes to diamonds, the cut is the most important factor in determining the value. Cut defines the diamond’s symmetry, brightness, fire, and how sparkly the diamond appears. The better the cut, the more expensive the diamond will be.
It is important to remember that the cut of a diamond does not refer to its shape (e.g. round, pear, etc.) but rather how well it has been cut. For example, a poorly cut diamond will lose light and sparkle, while a well-cut diamond will appear bright and full of life.
Colour
Colour is another important factor when it comes to diamonds. The more intense and saturated the colour, the more valuable the diamond will be.
While diamonds come in a wide range of colours, from yellow and brown to pink and blue, the most valuable diamonds are those that are completely colourless. These “white” diamonds make up less than 2% of all diamonds mined each year, so they’re pretty rare—and therefore tend to appreciate at a faster rate than other colours of diamonds. However, colourless diamonds are still very popular and can also be quite valuable.
Colour is also an important factor in determining a diamond’s value. Diamonds are graded from D (no colour) to Z (a yellow tint). The rarest and most valuable diamonds are those with little to no colour (D-F).
Carat
Carat weight is also a critical factor in determining a diamond’s value. When it comes to diamonds, a “carat” is simply a unit of weight. It is equal to 200 milligrams, or about 0.007 of an ounce. A carat can also be subdivided into “points.” There are 100 points in one carat, so that a half-carat diamond would be described as “50 points.” The carat weight is the easiest way to determine the size of a diamond.
However, it is important to remember that two diamonds of equal carat weight can have very different values depending on their cut and colour.
For example, a one-carat diamond typically costs around $4,000 per carat. But a two-carat diamond will cost closer to $8,000 per carat. And a three-carat diamond will cost around $12,000 per carat. So if you’re looking to invest in a diamond that will gain value quickly, focus on carat weight above all else.
Clarity
Clarity is an important factor to consider when purchasing a diamond. The clearer the diamond, the more valuable it will be. For example, a diamond with fewer inclusions and blemishes will be worth more than a diamond with more inclusions and blemishes. However, it is important to remember that not all inclusions and blemishes are visible to the naked eye, so it is important to have a qualified gemologist examine the diamond before making a purchase.
So, which diamonds rise in value the fastest?
While all diamonds are valuable, some rise in value faster than others, the size, colour, and clarity of a diamond all affect its value, but the most important factor is its cut. A well-cut diamond will reflect light beautifully and appear brighter than a diamond with a poor cut. As a result, diamonds with excellent cuts are highly sought-after by collectors and often sell for a premium price. So if you’re looking to invest in diamonds, look for those with an excellent cut—they’re likely to appreciate faster than other diamonds on the market.
Conclusion
While all diamonds are valuable, some types of diamonds gain value faster than others. For example, when buying a diamond, it’s important to keep an eye on potential appreciation; after all, you’re not just buying a piece of jewellery but investing in a stone that has real value. The best way to do this is to focus on the Four Cs: cut, colour, clarity, and carat weight.
Of these factors, cut is the most important; well-cut diamonds will always be in demand and hold their value well over time. Colourless (“white”) diamonds are also quite rare and tend to appreciate quickly; however, it’s important to remember that every diamond is unique, so don’t get too caught up in finding a “perfect” stone—focus on finding one that looks beautiful to you!
Australian Diamond Brokers have helped hundreds of people propose to their loved ones with our wide range of diamond engagement rings! Check out our full range of engagement rings now – we are sure to have a diamond you will love!
by Australian Diamond Brokers : March 30th 2023 Come visit our store or browse our website to find out more.