Diamonds were discovered between the 4th and 6th BC centuries by cave dwellers. These precious stones symbolized status and power among the rulers of kingdoms. Later, they started holding an ornamental value and were treasured as a legacy.
Even today, diamonds are considered one of the most adored investments you can make. This is because they exhibit an unmatched beauty that is dominant and cannot be replaced. If you are planning to invest your money in diamonds, then there is more than one aspect you need to consider making an informed decision. Before you go any further, ask yourself this question :
Are Diamonds A Good Investment?
Diamonds appear to be the best kind of investment on paper because they have high intrinsic value, are portable, and are easy to store. However, in reality, diamonds are considered to be a speculative investment. This is because, unlike gold, diamonds are not sold at a price per gram. Instead, there are multiple factors considered before the price of a diamond is determined. This makes selecting the perfect diamond a task.
Now that you know the dual-fold aspect of buying a diamond as an investment at jewelry stores downtown in Pittsburgh, here are some mistakes that you should avoid.
i. Overpaying
When investing in anything, the mantra ‘Buy low, sell high’ will serve you well. When it comes to diamonds, however, ‘buying low’ is harder than it looks.
The mantra Buy Low, Sell High is harder to achieve when it comes to diamonds. This is because three key points are taken into consideration.
The first is tax. Whether you buy a diamond from a non-VAT or VAT-registered company, you are instantly going to lose 20% of your investment. Therefore, your diamond must increase by 20% in value for you to even break even.
Second is the retailer markup. This varies depending on the store, making it crucial for you to buy a diamond at the most competitive prices.
Third, are hidden costs - such as the price of the setting. At some point, you will want to create a piece of jewelry from the loose diamonds you have invested in at a diamond pawnshop. Therefore, investing yet another sum of money all over again.
ii. Expecting Too Much
Investing in diamonds requires patience as they increase in value over time. Just like any other commodity, their value fluctuates. It is improbable that investing in diamonds will bring you profits in the short term.
iii. Purchasing The Wrong Sort Of Diamond
The last hurdle you might face while buying a diamond as an investment is to purchase the right one of the lot. You can overcome this hurdle by keeping the following points in mind.
a. Know the kind of diamond you are buying. It means being aware of the diamond in which you are investing your income. So that you can enjoy better returns in the future.
b. Buying certified diamonds from renowned pawnshops in Pittsburgh, PA. Certified diamonds from respected labs like GIA and AGS can be easily resold at a great value, giving you an upper hand.
c. The shape of the diamond you wish to invest in plays an important role, making it crucial for you to select a suitable cut. Round brilliant cuts are the most favored ones in the market, offering you a good resale value in comparison to the other cuts.
d. Buy a diamond of the best quality. It means that the diamond should have an excellent cut grade and above-average color and clarity.
These are some of the mistakes that you can avoid while buying a diamond as an investment because precaution is better than cure.
If you are looking for a renowned pawnshop offering the best quality diamonds, then here is a suggestion for you. Broff’s Diamond & Loan Co. provides the best quality of loose diamonds, collateral loans, vintage fine jewelry, and used Rolex watches in Pittsburgh. Visit them to know more about their services.
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