How To Invest In Diamonds
Owen Jones | December 20, 2009Everyone likes diamonds and nobody looks bad in diamonds, do they? It is not actually within the scope of this piece to recommend whether diamonds are a good investment or not, but their perceived value is enormous. Instead, I would like to look at where the optimum place to buy a diamond is, since it is more important that you buy your diamond from a respectable merchant with a warranty than that you believe you got a decent trade on eBay by means of buying somone’s granny’s engagement ring, which may not be genuine.
Therefore, before you begin browsing for diamonds, think about dealing with a bonded jeweller. Bonded jewellers sell bonded diamonds and there are not many bonded jewellers in the world. In deed, of the jewellers in the world, only approximately 5% of them are bonded.
Buying a bonded diamond will cost more than purchasing a non-bonded diamond, but when you look at what you get with the bonded alternative, you will perceive that it is well worth the extra expenditure.
Firstly, bonded diamonds have a buy-back policy for the existence of the diamond. No matter how long you keep the diamond, you can take it back to the bonded jeweller and sell it back to him or her, for a 100% refund.
If a jeweller does not offer a 100% buy-back assurance, for the life of the diamond, then you have to take a closer look at the diamond to see what is not right with it. Only joking, they will always offer you a 100% buy-back guarantee or tell you why not.
Bonded diamonds also have a breakage policy. If the stone breaks or chips, the bonded jeweller will replace it with a new one – one time. No jeweller would ever offer such a policy on any stone that was not 100% natural, so just the offer of such a policy should give you peace of mind concerning the quality of the diamond. Bonded diamonds are natural and untreated.
Bonded diamonds improve in worth, with a fixed increase rate that is intended to keep up with inflation. This means that a diamond that is valued at a certain amount of money today will be worth more in the future, as the price of diamonds continues to rise. This generally does not relate to buy-backs, although. It usually applies to trade-ins.
Alternatively, by buying a bonded diamond, you are sheltered against the possibility of a market collapse. If a market collapse does happen, the price of diamonds will plunge. However, the bonded jeweller guarantees to reimburse you the difference between what the diamond is now worth and what you paid for it before the market fall.
It may be tricky to find a bonded jeweller in your locale, but if you can, this is who you want to deal with, as opposed to dealing with a non-bonded jeweller. Specifically inform the jeweller that you are only interested in bonded diamonds. You can find a bonded jeweller in your area by exploiting various online resources like Google or Yahoo, or by calling the local jewellery shops.
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