Mistakes You Should Definitely Avoid While Investing In Diamonds
Investing in diamonds is a sensible decision especially when the global economy is going through turbulent times. There are several reasons behind this change in mentality in both serial and occasional investors all over the world. Some of them are:
- Diamonds are easy to move
- They don’t need maintenance
- They can be stored easily
- Anonymity is another appealing factor
Furthermore, in the opinion of experts associated with argylediamondinvestments.com.au a leading diamond investment solutions provider, the ROI factor of investment-grade diamonds are high when compared to other investment mediums.
This made diamonds to fall in favour of serial and occasional investors who want to move away from traditional investment mediums, as the latter, in recent years, are unable to deliver promising results.
All of this sounds very appealing but there is a catch – you would need to avoid certain mistakes if you want to become a successful diamond investor. Some of the mistakes are enunciated in the sections that follow.
Paying too much for your investment-grade diamond
The mantra to a successful investment is to buy cheap and sell high and if you are buying high, man, you need to take a step back and rethink! But, buying low is easier said than done. There are two factors that can pose as hurdles in your way to buying diamonds cheap. First, there is the tax then there is the markup price put on diamonds by a retailer.
If you are purchasing diamonds from a company that is not registered with the tax authorities, you would be losing more than 20 percent of your investment when you want to sell the same in the future. Retailers, on the other hand, have opened up shop to make money which is why you will be paying a lot more than the diamond is really worth. The solution to this pickle of a situation is to get in touch with diamond investment solutions providers.
Keeping your expectations high, really high
If you are investing in diamonds thinking that you would get rich within a few days or months then you are making a big mistake. Diamonds, no matter what people say, are commodities, at the end of the day. And an investment-grade commodity takes a lot of time to increase in value. If you are looking for short-term gains, investing in diamonds is not a good idea.
Furthermore, you would need to be patient as well as have the eye to assess which is the right time to let go of your diamonds. As mentioned earlier, diamonds are commodities and their value can either go up or down, depending on the supply and demand of the same in international as well as domestic markets.
Bottom line, you would need to be patient!
Investing in uncertified diamonds
Avoiding certified investment grade diamonds and going for run-of-the-mill pieces of from your neighbourhood shop won’t fetch you good returns even if you hold on to it for 20 years!
Always buy certified, investment-grade diamonds from a renowned diamond investment solutions provider for good returns. Bear this in mind that a certified, investment-grade diamond will be easier to sell in the market since the same is a desirable commodity among buyers.
The final mistake that plagues diamond investors all over the world is putting their money on diamonds that are not investment grade. Investment grade diamonds come with certain aspects that make them easy to sell and that too at high prices. The said aspects could be in the form of colour, fire, intensity, secondary hue, cut, clarity, carat weight. Invest in a diamond that ranks high in the aspects mentioned here for the best results.