While there are many commodities where one could invest profitably, in this article, we will talk about the growing importance of investing in colored diamonds. Also referred to as chocolate diamonds there are many who believe that investing in these wonderfully colored and naturally occurring diamonds could be a choice. However, there are pitfall and challenges in such a decision, and therefore you must do a thorough and total review of the whole thing and only then should you move forward. Without wasting too much time, we will first get started with the pros and cons of such investments and look up a few other things for the benefit of our readers amongst who many could prospective customers.
Pros Of Such Investments
There are some obvious advantages of such colored diamonds. Hence apart from using them for making chocolate diamond jewelry, you could use them for investment purposes also. The pros of such investment are very much there because of the nature of the colored diamonds. They are durable, portable and inflation does not impact them. Further, there is bound to increased demand for these colored diamonds, and this could have a psychological impact in more ways than one.
Cons Of Such Investments
However, on the other side of the coin, there are some downsides and cons of which also we must be aware. There is little price transparency, and many investors often have complained about lack of tradability being a big problem. Further regarding the period of investment, unlike the common perception, many traders feel that colored diamonds are good medium period investments rather than being a long period investment.
There are reasons to believe that they could be better investment options when compared to colorless or white diamonds whose value are quite big. However, before getting started with investing in colored diamonds, there are some important points that one should bear in mind, and we are sharing a few of them.
What Exactly Are Investment Grade Diamonds
When an investor looks at any investment plan, there are two important points which he considers. One is a risk and the second is the potential earnings out of it. So when we are evaluating these colored diamonds, these above two factors should be compared, and only then a final decision should be taken.
Investment grade diamonds are often referred to as diamonds which come with some unique characteristics attached to them. These characteristics make it possible to overcome some risks and downsides attached to such investment. Hence, they may have a better chance for the investments to increase and become healthy over a period. If you can play to both side of the equation, you have a much better chance of success.
Rarity Is A Factor
The rarity of colored diamonds is perhaps one of the biggest reasons as to why they are considered so very precious. Hence this rarity again could be one of the main reasons as to why you should invest in these colored diamonds. You need to bear in mind the fact that only 1 carat out of 10000 carats are colored diamonds and this in itself should be a good reason for investing in them. However, the onus lies in investing only in those colored diamonds which are pure and have passed the grades regarding color depth, saturation, spread, intensity and of course other attributes like carat and so on.
They Come In Different Shapes
Another reason why it makes sense to invest in colored diamonds is that of the fact that they come in unique shapes and sizes. While the four Cs are to be taken into account while evaluating colored diamonds, more importance and weight is perhaps given for color because of the rarity of brilliant colors. A small change in the pavilion angles could result in the color of the diamond to change quite significantly. Hence, these are some important points to be kept in mind when it comes to buying and investing in colored diamonds.
Make The Right Investment Decision
While the above are some obvious reasons for investing in colored diamonds, you must take into account important points. These include budgets which you have and the various hues and colors which you are choosing.