Should Diamonds Be Part Of Your Investment Portfolio?

Diamonds can be part of your investment portfolio only when you have gems that have some very unique properties

There was a time when diamonds were valued as an investment option in quite the same way as gold. However, things have changed, as diamonds are now being grown in a laboratory environment. These lab grown diamonds have the same looks and chemical composition as natural diamonds. And yet, they are 70% to 80% cheaper than natural diamonds.

However, diamonds can still be part of your investment portfolio. For that, you need to consider special diamonds referred to as investment-grade diamonds or collector’s items. Let us take a look at some type of diamonds that can be considered as part of your investment portfolio.

Diamonds with special colors – There are natural diamonds with a unique signature in the form of colors such as blue, pink, red and yellow. These diamonds are valued for their exclusivity, even when colored diamonds can also be created in a lab environment. Natural diamonds with unique colors come from specific trace elements that were there during the formation of these diamonds. For example, blue color comes from boron whereas yellow is due to nitrogen. The more intense the color, the higher is the price of these natural-colored diamonds.

Diamonds with no impurities – It is extremely rare to find diamonds with absolutely no impurities. These natural diamonds are referred to as type IIa diamonds. Some examples include the Koh-I-Noor diamond and the Cullinan diamond. Type IIa diamonds are known for their unparalleled brilliance and clarity.

Diamonds with historical relevance – These can be classified as collector’s items, owing to their historical significance. At auctions, these diamonds can fetch large sums of money. A relevant example would be the Grand Mazarin. This is a light pink diamond that was part of French crown jewels. The last known price is $14.5 million, when it was sold in 2017.

Diamonds with unique cuts and shapes – These types of diamonds can also be classified as collector’s items. Some examples include a heart-shaped vivid blue diamond named the Heart of Eternity and a pear-shaped diamond named the Taylor-Burton Diamond. These diamonds stand out with their unique shape and command premium pricing.

Diamonds with unique characteristics – Some natural diamonds have a unique profile. For example, there are diamonds that change color depending on the lighting or temperature. These are called Chameleon Diamonds. Similarly, there are Fluorescent Diamonds that emit a unique glow when put under UV light. Some diamonds may have unique crystals trapped inside, which makes them valuable to collectors.

As is evident from above, investment-grade diamonds or collector’s items can be included in your investment portfolio. However, these may not be as easy to sell as compared to other items such as stocks or gold. If you are looking at long-term investment goals, these special diamonds can be considered.