This article is a follow-up to our previous piece on the differences between natural and lab-grown diamonds, which you can find here. 
So, you've decided to invest in a diamond, but you're unsure how to choose the right one. What shape, what size, what color, clarity? With so many choices, where do you begin? 

To make life easier for you, here is a simple guide to investing in diamonds: 

I. The investment stage: 

1. Check the criteria for investment-grade diamonds, 
2. Determine how much you want to invest in investment-grade diamonds, 
3. When buying investment diamonds, obtain offers from several sellers and compare their prices. Request quotes from different types of sellers, not just high street shops but also smaller sellers. Different sellers have varying pricing policies and overhead costs that affect their product prices. 
4. Always look for natural certified diamonds, preferably with GIA or HRD certificates. When comparing the Four Cs, compare diamonds certified by the same laboratory. For example, if you compare a 1.50 ct. D IF 3EX N GIA, compare it with another GIA-certified diamond, not with IGI, for example. 
5. Compare comparable diamonds in terms of their qualities. A slight change in one of the Four Cs can lead to a significant price change. 
6. Compare your preliminary budget with diamond prices, 
7. If choosing between a bigger diamond of lower quality or a smaller diamond of higher quality, go for the smaller, higher-quality diamond. It's safer for resale in the future. 
8. For a big enough budget to buy top-quality diamonds, consider the investment period. Aim for at least a 5-10 year investment period. The choice depends on your outlook: 
   a. If your investment outlook is 10 years or more, opt for fewer diamonds with a larger carat weight. Larger carat investment diamonds typically appreciate faster. 
   b. If your investment period is less than 10 years or you want the option to withdraw earlier, go for several smaller diamonds. The value may not grow as fast, but it provides flexibility. 
   
   
    
   

II. The cashing-out stage: 

The cashing-out stage is the second stage in the investment process, but it should be considered first when investing in diamonds. 
Where can I sell my diamonds? How do I know if the price is right? 

When selling investment diamonds to our clients, this cashing-out question is the first one our clients need to answer. Here are some guidelines: 

1. When buying a diamond, inquire about the seller's policy on diamond buyback. Reselling through your original seller is often the easiest. 
2. Even without a buyback policy, ask the seller for a quote on your diamonds. 
3. Another option is selling your diamonds through an auction house, though this incurs more costs. Reserve this for diamonds or jewelry owned for a long time with a higher profit margin. 
   
    
   

FAQ: 

 
Question: How much can I earn on my diamonds? 
Answer: There is no common formula for all deals. The main factors are where and when you bought your diamonds, whether they are investment-grade or not, etc. There are two opportunities to profit on investment diamonds: at purchase and at sale. Both steps must be done carefully, without rush, considering all the circumstances mentioned above. 

Question: How can I achieve the best profit for my diamond investment? 
Answer: Do your research, compare prices from several suppliers. The best price for your diamonds is the best price for you. Asking for quotes from different types of diamond sellers increases the chance of finding a good deal that maximizes your profit margin over time. The same applies when you decide to sell your investment diamonds.