By Aulia R. Sungkar. Published in HighEnd Mag (Wealth Management section), October 2012 issue.
Unveiling the sparkling jewelries that yield a remarkable investment
“Diamonds are forever” was not said without a reason. A diamond has a far-fetched physical endurance that could make it last perpetually.
From the perspective of natural resources, diamond’s stocks are very limited. Diamonds are getting rare. So, these sparkling jewelries are among the most wanted commodities nowadays. This fact can also be translated as a guarantee to raise the value of diamond investment.
Especially for women, investing in diamonds offers an extra value, as each sparkling gem contains art, beauty and fashion that can be treated as both investment and jewelry.
Let’s take an example of a diamond ring crafted as the eye on the ring. Even though the piece of the diamond has already made jewelry, you can still remove that particular piece from the ring without having to worry that the value of the diamond will be sharply shrunk.
So, it wouldn’t be exaggerated if one says that diamond investment is one of the most lucrative means available in the market throughout the history, for the gem’s natural characteristics of being valuable and wearable. It’s not like gold bars where you can only hide them in a bank vault or safety deposit.
Diamond investment, just like that of gold, can also be used to hedge against inflation. The value of diamonds continues to climb as a future investment, and tends to appreciate even in highly uncertain times.
However, it is not that easy to directly compare the investment values between diamonds and gold bars because they belong to two different investment categories. Gold bar is a pure investment where its value fluctuates. Diamond, as both wearable and investable item, has the value that appreciates more slowly yet in steady climb.
Regardless of how lucrative the diamond investment is, it is important that you know the best quality of products you invest in. For example, rare diamonds are expensive because they are difficult to mine.
You should refer to Rappaport Index for the updated value of the carat. The index is included in the weekly Rappaport Report, which is distributed to jewelers and diamond merchants to set prices with Diamond Trading Company (DTC) controlling the prices.
It is also advisable that you buy diamonds with GIA certification. This world’s leading gemological authority invents 4Cs.
The 4Cs – carat, color, clarity and cut, are the most crucial elements that determine the value of a diamond. It’s more than just about the size, as often mistaken by many people. So, you know why there are smaller gems that soar higher in price.
Today, jewelry merchants across the globe refer to the 4Cs as a standard of measuring the value of any particular diamond.