Are diamond a good investment?

On paper, diamonds have a great investment sense. They have a high intrinsic value, are always in demand and last forever, and are also small, portable and easy to store (unlike the priceless Ming vase you should have had at auction). And, like most gems and precious metals, past performance shows that they will increase in value over time.

In reality, however, diamonds have very rough investment potential. One of the main reasons for this is that diamonds come in very awkward packaging. Unlike gold - which is evaluated by weight because let's face it, a block of gold is practically the same as any other block of gold - diamonds do not have a universal price per gram. When no two stones are exactly alike, each diamond must be valued on its individual merits and, more often than not, that valuation will be somewhat subjective. This means that choosing which diamond to buy in the first place can be the trickiest part.

Despite this, many people are investing in diamonds, all the more so now that traditional investment opportunities fail to provide the goods. Low interest rates and falling markets make investing in diamonds interesting to add to a diversified portfolio. But how do you go about buying a diamond for investment and how can you be sure of making a good return?

The truth is that D'ARRIO DIAMANTI never encourages anyone to buy a diamond as an investment without full awareness of the risks and potential pitfalls. With this in mind, we have identified three of the most common mistakes people make when investing in diamonds.
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