{"id":5243,"date":"2018-04-16T15:13:22","date_gmt":"2018-04-16T13:13:22","guid":{"rendered":"https:\/\/my-life.lu\/?p=5243\/"},"modified":"2018-10-03T11:29:12","modified_gmt":"2018-10-03T09:29:12","slug":"investing-in-diamonds-the-devil-is-in-the-details-30026","status":"publish","type":"post","link":"https:\/\/my-life.lu\/en\/investing-in-diamonds-the-devil-is-in-the-details-30026\/","title":{"rendered":"Investing in diamonds; the devil is in the details"},"content":{"rendered":"
\n\t\n\t<\/iframe>\n<\/div>\n

Diamonds can be double-barrelled in terms of the returns they offer investors. They can bring long-term value, as well as intangible benefits such as status and prestige attained by the wearer. However, investing in diamonds is not a simple feat, there are many factors that influence a diamond\u2019s value which should be taken into account by investors.<\/p>\n

As Shirley Bassey\u2019s classic goes, diamonds are forever. Indeed, they are one of the hardest naturally occurring substances known to man which is why they are widely used in industrial drilling. Their durable and unbreakable nature gives them an edge over other alternative assets and luxury goods such as classic cars, furniture and furs which can depreciate over time. These precious stones are also globally recognized as \u2018valuable\u2019 making them a portable store of wealth.<\/p>\n

However, unlike gold and other precious metals, diamonds are not homogenous; there is no universal world price per gram of diamonds. Diamonds need to be valued individually based on four key factors:\u00a0 carat, colour, cut and clarity (the 4Cs). All of these factors interact in order to determine the value of a stone, thus making it tricky to accurately track their value as an investment. However, the Gemological Institute of America (GIA) \u2013 a trusted and long-standing global authority \u2013 has created the International\u00a0Diamond Grading\u00a0System which has become a widely-used method for assessing diamonds, allowing investors to better understand the quality of their stones.<\/p>\n

Carats are the standard units used to measure the weight of diamonds. One carat is equal to 200 milligrams.<\/p><\/blockquote>\n

Carat<\/h2>\n

Carats are the standard units used to measure the weight of diamonds. One carat is equal to 200 milligrams and each carat consists of 100 \u2018points\u2019. The word\u00a0carat\u00a0comes from the Italian\u00a0carato, which derives from\u00a0the Greek phrase ker\u00e1tion\u00a0\u03ba\u03b5\u03c1\u03ac\u03c4\u03b9\u03bf\u03bd meaning ‘carob\u00a0seed’. In historic times, carob seeds were to measure the weight of jewellery because it was believed that there was little variance in their mass distribution.<\/p>\n

All else equal, the price of a diamond increases with the carat weight because larger diamonds are uncommon and more highly coveted. In June 2017, a ring containing the 26.27 carat \u2018Tenner\u2019 diamond\u00a0 (named as such because it was purchased form a car-boot sale for \u00a310 having been mistaken for a piece of costume jewellery) sold for $1.1 million; double its estimate. Then, in November 2017, a necklace featuring a giant 163.41-carat colourless diamond \u2014 the world’s largest of its kind \u2014 sold for $34 million at Christie\u2019s auction house.<\/p>\n

Cut<\/h2>\n

Before they are \u2018cut\u2019 by specialists, rough diamonds do not shimmer and sparkle as they are known to. The quality of the cut affects a diamond\u2019s propensity to shine and diamond cutting takes a high degree of precision and craftsmanship. A diamond\u2019s ability to interact with light is measured on three dimensions:<\/p>\n