Price of Diamonds as Alternative Investments
There are many, many factors that go into determining the value or the price of diamonds. The most well known, and probably the most emphasised, are the four C's: cut, clarity, colour, and carat. In fact, the highest quality diamonds are at the top of the scales in all four categories. These diamonds are called paragons, meaning perfect, and can have price tags in the millions! But for those with much more practical budgets, the factors behind pricing become critical in getting the best for your money.
When buying diamonds many people will look for their own personal taste unless they plan to sell them again. However, when looking for diamonds to be used in jewellery people look for their favourite colour, cut, and a practical size. When it comes to the price of diamonds, fine diamonds clearly will have higher price tags but again, the price is all dependent of the combination of the four C's. When you invest in diamonds always keep in mind which combination you wish to take a risk on as some will be more popular than others, such as a pink vs. black diamond situation.
The price of diamonds is also dependent on whether or not the stones are discount diamonds or second hand diamonds. Many people would prefer these types of purchases because the price is lower but the diamond is not necessarily in any worse condition than it was when originally purchased. In fact, there is an entire niche in the diamond markets that deal with these diamonds which also makes them an investment worth making because the quality lets them be resold.
Yet another factor behind the pricing of diamonds is the location they were mined from as well as the general-and normal-up and down flow of the market. It is important to research such things as tariffs, taxes, and price trends of certain diamond mines if they are foreign. It is also important to find the right time to buy in order to make sure you are getting the best deal for the diamond you are looking to buy.
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