The Exceptional Nature of Investment-Grade Diamonds 

Investment-grade diamonds are high-quality diamonds that are purchased with the intention of holding them as a long-term investment.  
Unlike most diamonds, where the client tries to find the best choice for his budget (in terms of Four Cs, usually with the emphasis on the weight and colour), investment diamonds represent the highest quality of diamonds with no compromises regarding the Four Cs. This zero-compromises policy is responsible for the fact that less than 5% of all the diamonds mined in the world are investment-grade. Furthermore, with the increase in the carat weight of the investment diamond, this percentage decreases dramatically. The result of this ‘natural selection’ process are the most unique diamonds. And as with all unique and beautiful things, these diamonds are highly desired and therefore highly valued. 

Distinguishing Between Jewelry-Grade and Investment-Grade Diamonds 

 
Jewelry-grade diamonds are usually diamonds of high quality, but not the top-quality diamonds that money can buy. Even investment-grade diamonds can (and usually are) worn in a jewelry such as a ring, necklace or earrings, but it is almost impossible to find an investment-grade diamond set into a jewelry piece when you walk into a jewelry store. The main reason is that investment-grade diamonds have a relatively high value per carat as well as total value. Therefore, jewelry shops don’t usually buy them for stock as this would tie up a lot of their working capital. 
Unlike investment-grade diamonds, the prices of jewelry-grade diamonds are partially derived from the development of the jewelry industry, not only from the diamond quality itself. Therefore, the prices of the jewelry-grade diamonds are more likely to fluctuate. 
So how can you find out whether a specific diamond is investment-grade or not? 
Investment-grade diamonds can be white (the correct description is colourless) or fancy colour diamonds.  

Key characteristics of investment-grade diamonds 

1. For ‘white’ diamonds: 
   1. Four Cs: 
      • Cut : Round brilliant cut diamonds are the most desired 
      • Carat weight : 1.00 carat and above 
      • Colour : from D to F 
      • Clarity : from IF or LC to VVS2 
   2. Proportions, symmetry, polishing : Excellent or Very Good 
   3. Fluorescence : None 
   4. Certification : GIA, HRD 
2. For fancy colour diamonds: 
   1. Four Cs: 
      • Cut : Fancy colour diamonds don’t usually come in round cut shapes. In contrary, fancy colour diamonds (even the investment-grade ones) have fancy shapes, such as pear, oval, emerald, cushion, etc. 
      • Carat weight : 1.00 carat and above 
      • Colour : The most unique, thus the most expensive is red colour diamond. Also, highly aesthetic and desired are blue and pink diamonds, the most common fancy colour is pink. 
      • Colour intensity : Apart from the main colour, the crucial aspect of the fancy colour diamond is the colour intensity. Most desired are fancy Intense, Fancy Vivid and Fancy Deep. 
      • Colour overtone : Fancy colour diamonds may have one or more colour overtones. Therefore, the main criteria for the diamond’s value is the total appearance of the diamond colour and potential overtones. 
      • Clarity : in general, the clarity rules are the same as for the white diamonds, but clarity in fancy-coloured diamonds is not as important as in white diamonds. 
   2. Proportions, symmetry, polishing : Excellent or Very Good, however these are also not as important in terms of total value as for the white diamonds 
   3. Fluorescence : sometimes, a certain degree of fluorescence can even have a positive effect on the total appearance of a fancy coloured diamond. Certain fancy colours are even impossible to exist without a certain amount of fluorescence. 
   4. Certification : GIA, HRD 
      

FAQ 

Question: Can lab grown diamonds become investment-grade? 

 
Answer: No, they cannot. Even though a lab grown diamond can easily achieve the same high quality as a natural investment-grade diamond, it will never become one. Lab grown diamonds can never achieve the one specific quality the natural diamonds have. And that is the uniqueness. Natural diamonds are all created by nature and this cannot be replicated in a lab grown diamond. If you bring a diamond to be examined by a gemmological laboratory, this laboratory will determine the age of the carbon atoms in the diamond. Almost all natural diamonds are 900 million to 2.3 billion years old (some of them even older), which can be proven by the laboratory. The oldest lab grown diamond may be 40 years old... And why does this matter? This matters for the same reason why a branded jewellery, watch or bag has a high price. Because it is the original. Made by the one and only unique brand. In case of investment-grade diamonds, this ‘brand’ is called the nature. You can copy a branded product, but it will never reach the status of the original. For the investment-grade diamonds, apart from the ‘brand’ factor, there is also the ‘uniqueness’ factor that differentiates them from all other diamonds, natural or lab grown. 

Question: Do you expect the prices of investment-grade diamonds to go up? 

 
Answer: It is a known fact that all the natural diamond deposits in the world are accounted for. It is also a known fact that the quality and quantity of these deposits can be estimated, based on the geological research of these deposits. Citing the FCRF: “At present, 40 mines worldwide account for 90% of the world’s diamond production but only 13% of them have a lifespan in excess of 40 years, and not more than 61 years. The availability of diamonds of all colours and quality levels will be affected, with no exceptions. The number of diamonds in circulation will thus be finite much sooner than people realize. This is not hyperbole; it is the most overlooked piece of information within the industry, with little knowledge available outside it. Within this 40-to-60-year span, 98% of all diamond mines will be exhausted, and within a quarter of a century, the majority of the 45 most notable diamond mines operating at the moment will cease to exist.” Based on these facts, we cannot give you a short-term investment advice, but if you look for a long-term investment, putting ‘a diamond egg into your investment basket’ is definitely a thing to consider!