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Diamonds have always been considered precious gems, signifying luxury, power, and love. From high-end jewelry to low-key accessories, diamonds offer both practical and aesthetic value.
They are unique in so many ways and are used for various things, including making jewelry like engagement rings, wedding rings, diamond pendants, diamond stud earrings, etc.
Diamonds are highly coveted for their rareness and beauty, making them a precious asset – both for decades to come and in the present day.
From their impressive resistance to wear and tear to their limited availability, diamonds have earned their prominent spot on any portfolio.
Diamonds are prized for their beauty and rarity, making them a valuable asset for those looking to diversify their investment portfolio. While diamond prices exhibit short-term volatility from time to time, the value of these gems has appreciated significantly over the years. Here are three reasons why diamonds remain a valuable asset.
Types of Diamonds
Are you looking to buy wedding jewelry, like a diamond pendant or a solitaire ring? Well, you should know that there are different types of diamonds. And the choice of diamonds dictates the price tag attached to it.
- Natural Diamonds
Natural diamonds are the earth’s self-made gems. These crystals are forged through temperature and pressure, and these conditions exist at about 100 miles below the earth’s surface.
Natural diamonds are quite the expensive gemstones due to the process involved in mining and marketing them.
Natural diamonds can also come as “treated diamonds.” While these diamonds undergo a similar mining process, their physical attributes were enhanced.
These diamonds are typically treated for two reasons: to improve their clarity or to alter their color.
Overall, natural diamonds are classed into two types – type I and II – both having two subtypes.
- Type Ia Diamonds
These sparkling diamonds, composed of nitrogen atoms in clusters, represent a whopping 95% of natural diamonds found and range from nearly colorless to pale yellow. Admired for their beauty and rarity, these stones provide insight into the depths of Mother Nature’s creations.
Type Ia diamonds are the most common type, known for their fluorescence characteristics and ability to absorb infrared and ultraviolet light.
- Type Ib Diamonds
This type is less common than the Ia type. In fact, it represents less than 0.1 natural diamonds.
In these stones, the nitrogen atoms are dispersed throughout the nitrogen atoms. Because they are scattered, the visible light on the blue end is absorbed, resulting in intense color, usually orange, yellow, or brown.
- Type IIa Diamonds
The fluorescence in type IIa diamonds differs with no visible absorption. These diamonds also do not contain nitrogen impurities. They are usually made from very high pressure over longer periods, resulting in irregular shapes forming.
Of all the diamonds, they are the rarest and most valuable. Therefore, the demand for this type by collectors and investors is also very high.
- Type IIb Diamonds
These diamonds are similar to type IIa diamonds. They do not contain any nitrogen impurities. However, they differ from type IIa diamonds due to the presence of Boron.
Boron makes type IIb diamond electrically conductive. It is also responsible for the diamond’s bluish or bluish-grey tint. However, this color adds to their visual appeal.
Type IIb diamonds are so rare that they represent 0.1 percent of diamonds.
- Lab-Grown Diamonds
Lab-grown diamonds are created using specialized machinery that recreates the high temperature and pressure found below Earth’s surface—the exact conditions where natural diamonds are formed over millions of years.
Aside from the benefits of affordability and ethical sourcing, lab-grown diamonds can be customized and crafted in colors not found in nature. For lovers of fine jewelry, this is a revolutionary development. No matter what your style preference is, it’s likely that you can find the perfect lab-grown diamond to call your own.
Below are the advantages of lab-created diamonds;
- Better quality and higher purity.
- Fewer defects.
- You can track the origin.
- A variety of colors can be created.
- Substantially more affordable.
The Four C’s
A diamond’s worth can be accessed based on this for c’s: clarity, cut, color, and carat.
This refers to the flawlessness of the gem. A diamond containing impurities or blemishes may affect the market price.
Blemishes tend to happen during the mining or jewelry-making process. Therefore, finding a diamond with no impurity is very rare.
This refers to the amount of light a diamond reflects. It is the most critical indicator of a diamond’s value.
A diamond that catches the light and gives a brilliant glare is said to have a perfect cut.
Carsten refers to the weight of a diamond. The size and weight are not the same. A diamond with a bigger weight will cost more than a lighter one.
Last but not least, a diamond’s hue/color drastically affects its value. A gem with the purest color will have to be entirely translucent and white, but if it is not pure, it will reflect yellowish colors and decrease its value.
Why Are Diamonds Valuable Assets?
It’s no surprise that diamonds are mainly used for wedding rings, proposal rings, and other accessories. After all, they possess brilliance and reflectiveness, and it is a symbol of prestige and luxury.
Although diamonds are known to be expensive, their appearance also plays a role in their price tags. That is why most high-value people prefer to go for quality diamond jewelry.
But is that all that dictates its value as an asset? The answer is no! Below are 3 reasons why diamonds are considered valuable in society.
- Mining Process
As you know, diamond is the hardest substance known among all other gemstones. The mining process is no easy task either.
What makes diamonds valuable is a combination of rarity, intricate mining process and human fascination. Each diamond is formed within the Earth’s mantle over millions of years before eventually being brought to the surface by way of rocks called Kimberlite pipes.
Getting a diamond from the depths of the Earth to market isn’t easy – it requires specialised drilling techniques and machinery. All gems are from about 200 km below the earth’s surface. Once they form, they will need to be excavated by miners through different processes. This combined with rough terrain and other environmental conditions makes it difficult and costly to mine diamonds, adding another layer of value to these precious stones.
A lot of people have different choices when it comes to selecting colors. For example, if you prefer red, you go for rubies; if you prefer green, you go for emeralds. Therefore, the status of color preference will cause a split in the supply and demand of these gemstones.
Therefore due to the indifference to the appearance of diamonds, there is a lot of demand for it among people.
In addition, you will always agree that diamonds don’t go against your color preferences. That is because they are translucent. This flawless nature is what increases their aesthetical appeal.
- The Rich History
Diamonds have a history that spans centuries, and the many stories associated with them make them highly desirable. Some of the oldest diamonds discovered were believed to be hundreds of millions of years old, making it difficult to determine their exact origin.
By virtue of their long history, diamonds have gained much value as, sentimentally, they are thought to represent eternity and commitment. Not just a symbol of wealth, diamonds boast an illustrious past, from being used as currency in medieval times to becoming the engagement ring staple for couples today.
In a sense, these glittering gems carry forward memories and emotions associated with an event or time spent together – even if it has been passed down for generations in one’s family.
Therefore, diamonds can truly be seen as valuable assets because they contain distant memories and immortalize priceless moments within them.
The diamond industry is a microcosm of the larger economic and social world – influenced by factors such as exclusivity and class. Yet, when we look beneath the surface, diamonds are part of our global cultural and economic landscape, with the worth of a diamond determined not only by its size and quality but also by the personal and societal connections it conveys. Understanding these intrinsic dimensions of a diamond can provide us with greater insight into its enduring appeal and value.
Diamonds have a sentimental quality, making them a must for engagement rings, wedding rings, pendants, etc.