When you buy a timeless item like a diamond you want to make a smart purchase. Doing research before hand and knowing your ins and outs about diamonds will help you making your choice in choosing the perfect diamond. Always make sure that when buying a diamond, the diamond is certified with a laboratory certificate done by a reputable laboratory like GIA, EGL and others. These laboratory certificates specify all sorts of specifications like the proportions of the diamond, the symmetry, fluorescence and most importantly the 4C's.
For thousands of years diamonds have been a form of decoration, currency and investment medium. Diamonds have risen in price over the years fairly consistently with inflation. At some points investment in the right stone would have returned a much better percentage than similar amounts of stocks, bonds or gold. On the other hand, an investment in the wrong thing or an investment made blindly because of lack of knowledge, can and in many cases has caused the buyer to actually lose money.
Remember, diamonds are normally sold on a retail basis. This is where you, the consumer, buy most stones. As one purchases stones of a higher quality and larger weight, stones that are designed for investment purposes rather than ornamentation, it is possible to actually buy at or near wholesale prices. When one goes to sell the stone, if one simply walks into a jeweler or New York-type diamond seller, one expects to lose from the retail price the stone may have been purchased at.
A number of factors establish the value of a diamond, one of which is the size of the stone. There are certain levels where the value of a high grade stone jumps appreciably simply because the stone is over this weight. In general, a large high-rated stone is worth logarithmically more than a number of small stones equaling the larger stone's weight. It is, as one would expect, considerably harder to find flawless or near flawless large stones.
When the jeweler or professional goes to buy a stone there are several things he will evaluate in order. Generally the stone is graded using the four C's of diamond grading. These are:
4. Carat weight