Diamonds

Loose diamonds! Just the sound of those words suggests an exquisite sensuality that that tickles the imagination. However, even investors like Warren Buffett find that loose diamonds are a sound investment in the future. Buffett recently acquired a two major US jewelry manufacturers and over 160 million carats for his investment portfolio. Clearly he thinks that diamonds will continue to rise in value as the world markets keep demanding more and more diamonds and the supply coming from South Africa, the conflict zones, and Russia are slowly drying up.

With DeBeers loosening their grip on the diamond trade (but not relinquishing it), other important trading centers around the world are opening up. The Dubai Diamond Exchange continues to grow. Shanghai is expected to become a major trading center as China's demand for diamonds and jewelry continues to expand.

And prices! Wholesale prices are already up a third since 2003 and DeBeers twice increased their prices in 2005 for a total increase of 9.5%. Analysts believe that diamonds will yield more than base metals or above average returns on investments.

The advantages of owning loose diamonds are many. First of all you can get bigger and better diamonds for your money. You can select a cut that produces the most beautiful stones. You can work with your own experts to set the diamonds in settings of your design or preference. You can acquire unusual shapes or cuts if you so desire. You are able to purchase large carat-weight diamonds that are seldom found in stores. And generally, you will get a great return on your investment.

Jewelers such as DiamondSafe.com offer loose stones for the consumer to purchase with the idea of acquiring an ideal stone to be used in a jewelry design of choice. Their diamonds are all rated and have either a Gemological Institute of America (GIA) or a European Gemological Laboratories (EGL) certificate. Both organizations are independent laboratories designed to protect consumers and the diamond industry by creating the standards used to grade loose stones.

Loose stones may be purchased in eleven different cuts: round brilliant, emerald, pear-shaped, marquise, triangle, heart-shaped, princess, asscher, radiant, oval, or cushion. The buyer may decide to concentrate on one or two different cuts and select the very best stone he can buy or select a few stone in many different cuts. It depends on the purpose of the investment and the beauty of the diamonds.

So for the young couple who want to select their diamonds with the very best value or for the forward thinking savvy investor, loose diamonds make sense. The burgeoning market in China, the declining supplies in South Africa and Russia, Canadian mines not fully online-all are reasons to believe that the value of diamonds will continue to rise in the foreseeable future.