---
title: "Which Diamonds Are The Best Investment?"
url: https://gittelsonjewelers.com/which-diamonds-are-the-best-investment/
date: 2020-05-11
modified: 2023-01-19
author: "Sammy"
description: "There is some arguments either direction for whether a diamond is an investment-worthy asset. Those focused purely on return on investment from a financial standpoint argue that it is not..."
categories:
  - "Diamonds"
tags:
  - "diamond investments"
  - "Which Diamonds Are The Best Investment?"
image: https://gittelsonjewelers.com/wp-content/uploads/2020/05/77782197.png
word_count: 877
---

# Which Diamonds Are The Best Investment?

There is some arguments either direction for whether a diamond is an investment-worthy asset. Those focused purely on return on investment from a financial standpoint argue that it is not an asset that gains value over time. Moreover, a depreciable asset that loses value the moment you drive it off the lot like your car. However, this could be said for anything purchased in a retail or financial category today. In fact, your 401K investments are also typically quite volatile and not guaranteed at all which also makes them a poor investment instrument (in some people's opinions...). Gemstones, gold, and oil have become an alternative for some in their portfolio and physical investment strategies.

But, we are financial advisors. We can however help you discern which diamonds are good investments and why.

![Which Diamonds Are The Best Investment?](https://gittelsonjewelers.com/wp-content/uploads/2020/05/88135318_2798907510175169_268306886153994240_n.jpg)

## Why diamonds are a good investment

Society's obsession with gold and gemstones go back hundreds or even thousands of years.  Like any other gemstone, diamonds are valuable because they are rare and in high demand.  The decrease in the supply of diamonds due to the exhaustion of diamond mines in the world increases the demand hence the value remains high. DeBeers has bought many of these mines over the years, giving them a controlling hand and stabilization in the production and price of diamonds - helping the diamond consumer retain value over the long-term.

Diamonds can be a great investment when considering not only the financial investment but also the intrinsic and emotional value placed on its most common purchase category - the engagement ring. There are many types of diamonds in the world but the large, colorless, or fancy colored and flawless diamonds are quite rare. These are actually the investment-grade diamonds. So which diamonds are the best investment? They are the highly-priced rare rocks commonly defined by the 4Cs: [cut](https://gittelsonjewelers.com/2019/07/23/diamonds-an-introduction-to-the-4-cs/#.XrmVaBNKjjA), [color](https://gittelsonjewelers.com/2019/07/23/diamonds-an-introduction-to-the-4-cs/#.XrmVaBNKjjA), [carat](https://gittelsonjewelers.com/2019/07/23/diamonds-an-introduction-to-the-4-cs/#.XrmVaBNKjjA), and [clarity](https://gittelsonjewelers.com/2019/07/23/diamonds-an-introduction-to-the-4-cs/#.XrmVaBNKjjA).

### Cut

The cut is the most essential factor that most people consider since it dictates the brilliance and the sparkle. It greatly influences the value, beauty, and depreciation rates. Diamonds are ranked as Excellent, Very Good, Good, Fair, and Poor. You simply have to avoid the Fair and Poor grades when looking for investment diamonds. The excellent grade is the best and Very Good and Good quite acceptable. Investment and cost conscious couples today find themselves purchasing smaller stones in order to gain the other important grading factors within their budget.

### Color

The colorless diamonds are the best. The color is ranked between D-Z and the D grade signifies pure diamond with no color whereas Z means a lot of colors. **The best investments lie between D and H**. The D grade has the highest value and appreciates within a relatively short period of time.

The fancy color diamonds are very rare. This makes them good investments although the other 3Cs need to be considered too. They are very scarce; hence white diamonds are used more often. The higher the intensity of the fancy colors, the higher the value of the diamond, which makes it ideal for investment. They are graded as Fancy Deep, Fancy Dark, Fancy Vivid, Fancy Intense, Fancy, Fancy Light, Light, Very Light, and Faint. The Light, Very Light, and Faint grades have low value since they are regarded as low-quality white diamonds.

The black and brown diamonds are not fancy diamonds. They can occur naturally and typically are very expensive. Today, many black or brown diamonds are artificially enhanced and have lower price points. The fancy colors also vary in value and rarity. They tend to decrease in value by order of red diamonds, blue diamonds, pink diamonds, then yellow diamonds.

![](https://gittelsonjewelers.com/wp-content/uploads/2020/05/1574131617-hal-pav-3031-blkrd-aw-1.jpg)2.4 Ct. Round Cut Black Diamond Halo 3 Row Split Shank Diamond Engagement Ring

### Carat

Larger white diamonds have greater value. However, large white diamonds often have a lower value than small fancy colored diamonds. This factor is a vital piece of information when considering the value of the diamond and the suitability for investment. You learn a few more detail about carat weight on our [Diamonds 101](https://gittelsonjewelers.com/diamonds-faq/#.XrmcDhNKjUY) page.

### Clarity

Clarity is not very important when purchasing diamond jewelry but it certainly is when buying investment diamonds. The flaws are normally invisible to the naked eye but they influence the value significantly. Clarity is graded as Flawless, Internally Flawless, Very Very Slightly Included, or Very Slightly Included. The first two grades are the best for investment since they have the highest values and high rates of appreciation.

The certified diamonds are also the best for investment as well as round, oval, square or radiant shapes.

#### So which diamonds make good investments?

Well, the average consumer is shopping for those emotional and intrinsic purposes and willing to spend quite a bit in that value category. For those more scrutinous diamond shoppers, the highest quality diamonds are certainly the best investment diamonds due to value and appreciation if one is seeking long-term investment on a financial level as well as a personal and emotional level.

There are so many ways to gain value when it comes to diamonds - specifically your engagement rings and wedding bands.

## Contact Gittelson Jewelers

Diamonds are our business. We have helped thousands of engaged couples find, source, or custom-design the engagement ring of their dreams. For your health and safety, we offer virtual consultations to discuss your engagement ring ideas, as well as curbside pickup and [doorstep jewelry delivery](https://gittelsonjewelers.com/2020/03/28/world-class-service-in-jewelry-retail/) in Minneapolis.

Simply schedule an appointment to chat below.