Are Diamonds Still an Investment?

Everyone goes through this at some point: you buy expensive jewelry in the hopes that the prices will grow and that you’ll be able to sell them at a better price in the following years.

But considering the changes on the market nowadays, is it still worth it to invest in a natural diamond? Compared to synthetic or other lab-made diamond-like products, is it still worth it to blow loads of money on a piece of rock?

Natural vs. Synthetic Diamonds

There’s a huge gap in prices when it comes to natural and synthetic diamonds. Natural diamonds, for example, can be found anywhere at $10,000 to $50,000 per carat – whereas synthetic diamonds go from $3,000 to $5,000. When it comes to budget, it’s cheaper to go for a lab-created diamond.

Granted, there were always reasons to invest in diamonds. They took little room, and yet they were worth so much. Plus, diamond is durable enough so that even your great, great, great, great, […] great grandkids can wear them. When it comes to durability, nothing can beat diamonds.

On the other hand, this is how much it costs to turn ashes into diamonds: between $3,000 and $15,000. This makes it slightly more expensive than your average fake diamond – and obviously less expensive than a natural diamond. It’s a good investment, particularly if you purchase it from the right company – for example, Heart In Diamond.

The Diamond Risk

At this point, all of us choose real diamonds to invest in – but it’s not always a “gold mine,” so to speak. For example, silver and gold have a price transparency that you can check at all times in stock exchange. With diamond, however, you can’t really do these checks.

In the end, the price is based on the demand. If the demand is high, the prices will also obviously grow. On the other hand, if the demand is not as high, the price will eventually start to suffer as well. Even a drop as small as 10% is going to hurt your budget.

Tradability is also an issue here. It’s very easy to buy a diamond – but it’s not as easy to sell it. You may have noticed that while prices for buying are very high – the selling ones are very low. You may buy a ring for $100,000, and you’ll end up not being able to get more than $50,000 on it later on.

The Memorial Deal

Nowadays, people are investing more and more in memorial diamonds. They are less expensive than natural diamonds – but at the same time, retain the durability. After that, their creation process resembles the one they went through in natural environments. This means that they should be just as durable.

To this, we also add the grieving factor. A memorial diamond will have deeper meaning for the people wearing them – since it won’t actually be a random stone. It will be like carrying a memento from your loved one – a memento that won’t ever lose its shine.

Final Thoughts

So, is it still worthy to invest in diamonds? Probably not. We all buy diamonds for their durability, not necessarily to sell them – and a good set of synthetic/memorial diamonds can offer the same effect.
Considering the uncertainty of the trade market, you can hardly consider it a safe investment. At least with a memorial diamond, you’ll know that your purchase has meaning – and that you did not spend your money on a random stone.

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