Do Diamonds Increase In Value?

With an investment such as diamonds, a common question is: do they appreciate value? We’ll take a look at the answer to that question as well as the reasons why

Do Diamonds Appreciate In Value?

The short answer is: not often. Most often diamonds are purchased in a retail store, where they are significantly marked in price given a designer or brand name. If purchased at retail and then resold it can be difficult to even get the amount that one paid.

Purchasing a diamond from a private jeweler or a jeweler that sells diamonds comparable to online dealer pricing can oftentimes lead to the purchase of a diamond that can retain its value and even at times appreciate in value. Private jewelers are able to sell diamonds on much lower margins due to lower overhead costs. Private jewelers often hunt for diamonds on incredible deals for their clients and pass the savings on.

If you want to purchase a diamond that will maintain its value or even increase in value over time it is best to work with a private jeweler who will not just sell you any diamonds, but find you one that is a good deal.

But What About Supply? Aren’t Diamonds Rare?

Diamonds are only rare due to the conditions in which they’re created, which generally involve miners digging into the mantle of the Earth. However, diamond-extraction techniques are improving and now include things such as sweeping the ocean floor and recreating the extreme conditions in laboratories.

The actual amount of Diamonds in the earth’s mantle is very large, it’s just that many are hard, if not impossible, to access given our current technology. Remember, humans have explored more of outer space than they have of our own earth’s core, so there’s a lot to be discovered within our own planet.

“Collector’s” Diamonds

The diamonds that do increase in value are the collector’s diamonds. These are diamonds of extremely rare color, perfect quality or ones in very large geodes that haven’t been broken down yet. For example, any diamonds you find in the Smithsonian are likely to skyrocket in value, though that value would likely not be realized in our lifetimes anyway.

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