Diamonds

Diamonds tend to be a fairly safe bet when it comes to an investment. It's very likely you'll enjoy an increase over the original purchase cost. While the value will fluctuate like almost any other investment, Diamonds tend to be a safer investment than some other gems, mostly because they're so hard! They're not easily damaged, so diamonds stay in much better condition over the long term, and therefore keep their prices healthy.

Diamonds have usually been purchased for personal reasons because of their beauty--not primarily as an investment option. However, history shows that diamonds prices have increased significantly, especially for certain types within the diamond family.

The diamonds graded F, G, H, in color tend to show the most favorable increase in prices paid by dealers. These qualities have increased as much as 80% since 1986 alone! The very rare D and E colors, while not as much of a jump, still show a 40% in value since 1986.

If you're looking at diamond prices over time, the trends tend to show that purchasing a diamond with solid quality instead of something extremely rare will yield better overall investment results. While it might sound logical that an extremely rare diamond would fetch the best price over time, industry patterns for diamond prices show that solid but average quality is the bigger factor in appreciation of your stone. Why? Mostly due to demand. Most buyers aren't willing to pay the extra cash for differences that aren't really noticeable to the naked eye.

There are likely other avenues that will give you a better return on your investment, so diamonds probably aren't the best for that. However, diamond prices over the years have increased enough that the appreciation makes it an added benefit to your beautiful piece!