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How do you actually invest in diamonds? 3 top steps

How do you actually invest in diamonds? 3 top steps

You have made the decision to start diversifying your investment portfolio or you simple decided to start investing in diamonds? Here’s the top 3 steps you need to follow before launching yourself in this adventure:

  • Learn your basics about diamonds and certifications
  • Set your budget
  • Diversify the diamonds

  • 1.50 carat diamond Toi et Moi design ring in platinum From USD 8.840
    (excl. VAT)
  • Trilogy ring in red gold with a central emerald and 2 round diamonds From USD 4.290
    (excl. VAT)
  • 2.00 carat solitaire diamond ring in yellow gold From USD 1.100
    (excl. VAT)
  • 0.70 carat solitaire halo ring in yellow gold with round diamonds From USD 2.390
    (excl. VAT)

Learn your basics about diamonds and certifications

Before you start anything, it is important to learn some basics about diamonds and certification. You can of course rely on the professional jeweller to help you, but you will find that going in with that extra knowledge can be very useful. 

The 4 characteristics that are taken into account when grading diamonds are the 4C’s. They stand for carat, colour, clarity and cut. Carat is the weight of the diamond that is expressed in carats, where 1 carat equals 0.2 grams. Colour is the degree of colour you can’t see in a diamond and it is graded starting from D which is colourless to Z which is light yellow or brown. Clarity refers to the absence of inclusions and blemishes as a diamond without them are rare and that affects the diamond’s value. Last but not least, is the cut which refers to the proportions of a diamond and its finish which give the diamond the unique fire, brilliance and scintillation.

And the best way to make sure you have purchased the ideal investment diamond is choosing a certified diamond, with a certificate from a recognised laboratory worldwide. As laboratories unfortunately do not use the same grading standards, you need to choose the most reputable ones.

Set your budget

It is crucial that you set your budget and limit your spending. You need to know before you start what you have at hand and how far you can go. Because although you may not be able to purchase that diamond you had in mind you can always give in slightly on other factors to make sure you have what you need while respecting your budget.

Diversify the diamonds

Once you have the budget, you need to know that you don’t have to spend all your money in one diamond only. You could indeed split your budget into 2 or 3 diamonds in order to diversify your portfolio. Haven’t we always heard that it is always important not to put all your eggs in the same basket? Well that also applies to investments in diamonds as it may reduce risk and allow you to eventually liquidate part of your portfolio if needed.

BAUNAT is specialised in diamond jewellery and investment diamonds. BAUNAT’s team can answer any question you may have on the subject and guide you through the whole process.

Written by: CHLOÉ POUPON-DUMONTET Diamond Jewellery Advisor

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