Are Diamonds a Good "Investment"?
Shining radiantly wherever they go, natural diamonds have enchanted the world for thousands of years. In Greek mythology, these gemstones were believed to be the tears of the gods. As we fast forward to contemporary culture, diamonds are now connected to glamour and eternal romance. Due to their rich history, this shining stone holds a special place in our hearts. Each luminously shimmers with its own timeless value and shares an emotional story.
We’re often so mesmerized by the beauty of diamonds that we forget what a powerful financial investment they can be as well. From loose stones to a gorgeous solitaire, diamonds often carry tremendous worth. At Murphy-Pitard, we’re passionate about helping our customers discover the perfect diamond for their individual purpose. That’s why we’ve taken the time to share some insight that’s often overlooked when it comes to purchasing your own stunning stone. So, without further ado, here are three reasons to consider adding diamonds to your financial portfolio and how to know which diamond we might recommend:
1. Diamonds Increase in Value
In 1952, a customer purchased a glittering 2.35-carat diamond ring for $3,500. Today, that same diamond ring appraised for $31,000!
This is just one example of how diamonds increase in value over time. When purchasing jewelry, it’s helpful to not only focus on the emotional tie to a piece but also the potential long-term financial benefit. Diamonds are durable, their popularity has stood the test of time, and they consistently gain in value through the decades.
Whether you are searching for an engagement ring, timeless diamond studs, or a show-stopping pendant, the best investment is to choose single large stones of nice quality with credentials, like a lab report or an appraisal by a graduate gemologist, such as our own Amanda Pitard. By prioritizing single stones with nice carat size over smaller micropavé or pavé jewelry designs, the money you are spending is about the diamond itself, avoiding the high costs for the jeweler’s labor in manufacturing that you normally don't recoup in the event of resale. Single large stones are more easily re-purposed or upgraded. We like to think of them as a savings account that you can wear and enjoy, pass down to future generations, or even upgrade the carat size through our Diamond Upgrade Program.
2. Diamonds Endure
The word “diamond” comes from the Greek “adamas”, which refers to a substance so hard it’s unbreakable. Unlike softer gemstones, like opal, emerald, or tanzanite, diamonds don’t easily scratch or break. They endure the way other gems can’t, making them a preferred choice for daily wear. Yet, there are some diamond shapes that hold up better than others. Our recommendation is to avoid stone shapes with sharp corners and points, for example, a marquise or princess cut diamond, when purchasing with durability in mind. The most timeless choice is a classic round shape. "Investors" who buy diamonds strictly to lock them up in their safety deposit boxes and let them gain in value tend to prefer round brilliant cuts with a minimum of G color, a minimum of VS2 Clarity, accompanied by a GIA lab report, and a minimum of one carat in size.
3. Diamonds are Emotional AND Physical
Diamonds are a miracle of nature, as is your love. They’re made purely of carbon, organic matter that was trapped deep in the earth and subjected to extreme heat and pressure. In extreme conditions, the carbon crystallizes, turning from coal or graphite into an icy diamond. Once the diamond forms, it takes a rapid ascent, through a volcanic eruption, which shoots the diamond up to the earth's surface. Without the quick ascent, the carbon converts back to graphite or coal. The diamond's journey is such a miraculous story in its own right, perfect to match the miraculous journey of your life. What better way to symbolize your love than with a rare gem that is durable and beautiful, whose sparkle brings a smile, while gaining in value, and whose timeless allure transcends generations? Unlike a 401K or stocks, a diamond can be worn, treasured, bringing daily joy in a very physical way. Diamonds become cherished heirlooms, treasured by family members from one generation to the next.
Find Your Perfect Diamond at Murphy-Pitard
At the end of the day, a diamond is purchased with your heart. However, it’s always important to recognize the long-term investment. Certain diamonds will gain more in value over the years, allowing you to pass down a stone that’s rich in more than just emotional worth.
When you shop at Murphy-Pitard, our team will make recommendations for jewelry that fits this sentiment. Our highly trained staff has more than 100 years of combined industry experience and no one knows these glorious stones better than we do. Whether you’re buying a gem for an engagement ring or creating a one-of-a-kind custom piece, we’re here to guide you through the process of discovering the diamond for you. So come on down 201 North Jefferson Avenue. We’re excited to see you!