Want To Begin Investing In Diamonds? 4 Things You Need To Know To Get Started
If you have decided that it is finally time to get serious about making investments that will pay off in the future and help fund your retirement, then you may be thinking of investing in diamonds. Diamonds make great investments today, because investment experts believe that while the supply of diamonds will increase by about 2-3 percent over the next ten years, the demand for them will grow by about 7 percent. When the demand for any item is higher than the supply of it, it leads to the value of the item naturally rising.
However, before you begin browsing for diamonds for sale online, read on to learn what you need to know before you get started.
1. The Growing Chinese Middle Class Is Fueling Much of the Diamond Value Surge
Now that the economy in China is improving and the Chinese middle class is growing (the Chinese middle class has grown from just 4 percent of the country's population to an expected 76 percent of the population in 2022), the demand for diamonds in the country is expected to skyrocket. Since it is the largest country in the world by population, that huge growth of the percentage of the Chinese population that can afford diamond engagement rings and other diamond jewelry will likely cause the value of diamonds to climb dramatically.
That means that diamond prices will rise for investors, and now is the time to buy diamonds before they increase in value and price.
2. Naturally Colored Diamonds Are Expected to Rise in Value More Than White Diamonds
Naturally colored diamonds are are already much more rare than traditional white diamonds, and since there are only a few mines in the world where each diamond color can be found, no one knows how long each color will even continue to be mined. In fact, the mine where the most valuable pink diamonds in the world are found, the Argyle mine, is expected to be completely depleted of its colored diamond supply within just a few years and will then officially close.
Diamond colors that occur naturally include pink, blue, yellow, purple, green, orange, and several other colors. Due to their rarity and the fact that their demand is already exceeding their supply, the value of colored diamonds has already risen steadily over the past three decades, and their value is expected to rise at a more rapid pace now that a large colored diamond mine is closing and the value of all diamonds is expected to rise.
3. Take Care When Storing Your Valuable Diamond Investments
Before you buy your first investment diamonds, it is a good idea to decide where you will store them to keep them safe. The last thing you want to have happen is for a home intruder to break in and steal them, of course. While you can store them in a safe in your home that you store your other valuables in, experts suggest that keeping commodities like diamonds and gold in a bank safe deposit box is best.
The average safe deposit box costs just 50 dollars per year to rent, and when you store your diamonds in one, you can feel much more secure that they won't be stolen by home intruders.
4. Investment Diamonds Can Be Worn Without Depreciating Them
While there is nothing wrong with purchasing diamonds as investments and simply storing them in a bank safe deposit box, you may wonder if you can wear and enjoy them while you own them. If you plan to hang onto them for many years, then you may think that you might as well have some beautiful jewelry to wear in the meantime. The good news is that you can have diamonds that you purchase as investment pieces turned into great pieces of custom jewelry without reducing their value. Since diamonds are so durable and damaging them is very difficult, you also don't have to worry about being too cautious when you wear them.
If you are considering making a new investment that will pay off in just a few years, then investing in diamonds is a great option. Keep these four facts in mind when browsing diamonds for sale. For more information on buying diamonds, contact a company like Rocky Mountain Gold & Silver Exchange.