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Fine investment in diamonds can bring in great returns – some effective tips

Making investments is something that we all should do for ensuring safety and security of the future. People make investments through fixed deposits in banks, mutual funds, stocks, bonds and many other means. Investment in gold, silver and other expensive metals is also quite common. Current trends are showing that more and more numbers of people are looking towards investing in diamonds. Diamonds are among the most precious gems and they are pretty expensive. In fact, this valuable gem has been verified to be an inflation-fighting commodity. Many financial and gem experts opine that diamonds are next to gold and platinum when their demands and valuations in the market are considered. And this is the reason that diamond investment is being considered as a great means for savings for the future.

Since investment in diamonds is not something which is very common even now, here are some tips regarding the same. When you are venturing in a new field of investment, these tips will be of great help:

 Start with extremely basic diamonds for the investment

As a newcomer to diamond investment, take small strides initially. There is just no need of buying exquisite and expensive diamonds right in the beginning. In fact, diamonds that are exclusive and rarely found will not have resale appeal like general and common diamonds. Basic diamonds within D-H colour scale and with good cut are good enough. Buying a diamond weighing about 1-5 carat is good enough for initial investment. Such diamonds are readily available and more importantly, they are easy to resell.

 Keep the quality factor of the diamond in mind

The quality of the diamond decides the cost of the gem - while buying it upfront or while resale. The diamond should be certified by an authorized company like Gemological Institute of America (GIA) or other reliable and trusted authorities. GIA ensures that strict grading standards are maintained for all kinds of precious metals and stones so that their right valuation is obtained. GIA certified diamonds are genuine and authentic and you can purchase them for investment without any fear.

 Selecting classic styles and designs

When the sole purpose of buying diamond is for investment purpose, it is important to choose the model with classic style and design. These styles and designs are sure to withstand the test of time. If you intend to buy a loose piece of diamond, round cut and cushion cut are the most preferred cuts. Pear and heart shaped cuts are fashionable but they might not have high resale value in the market in future. Apart from loose diamonds, if you want to buy diamond jewellery in the form of rings etc, choose eternal settings for the same. The proportioned and clean settings are evergreen and they will always be in trend. They are safe bet for all kinds of diamond investment. There are many experts who will help in making the right decisions for selecting diamonds for investment. Seek their assistance if you have doubts and confusions in this regard.

This was posted in Bdaily's Members' News section by Wahid Ali .