Why Diamonds are Still a Good Investment in 2011

While in search of a recession-proof investment, don’t overlook diamonds.  The price of diamonds continues to increase and predictions are that this trend isn’t going to end anytime soon.

Why is this the case?

In addition to India and China’s love affair with diamonds, this precious stone continues to be used most often in engagement rings.  And in spite of the current jobless rate, there are many people of wealth who enjoy buying diamond jewelry to wear while also making a good investment.

Diamonds have several advantages over other investments:

• They are traded worldwide, so are not dependent on one economy.
• Unlike real estate, diamonds don’t require annual taxes or continual maintenance.
• You don’t have to register them or alert others that you have them.
• They don’t wear out.  Diamonds ARE forever.
• Unlike stocks, diamonds will never be worthless.

Be sure to get a certificate or diamond grading report by a gemologist when you buy a diamond.  The gemologist analyzes a diamond to determine its weight, shape, dimensions, color, and other characteristics to determine the grade of the diamond.  The grade will help value the diamond for insurance purposes and for when you want to sell it.

A certificate is different from an appraisal which is a statement from a jeweler or gemologist that puts a value or value range on the diamond.  While the appraised value is based on many of the same things a certificate is based on, at the end of the day it is only the subjective opinion of the appraiser.

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