Diamonds for Long Term Capital Growth
Diamonds are going to assets for long-term capital growth and such how well suited for pension planning. Investors doing such plane should strongly consider diamonds. Changes under the ERISA new make it easy to include time and pension and profit sharing programs. Diamonds would also be Place to invest funds to much for your children's education provided of course that they're still young.
As for what type of stone to buy a referred back to the previous chapter on the four C's in the fifth see if certification. No matter what size of stone buying it's important to get the highest car you can afford recommend sacrificing a certain amount of weight in wanted to get higher-quality stone. Do not sacrifice grading standards in order to get a bigger diamond.
To summarize my earlier recommendations try to stay within the greater color which are D through H. in size stay between 1/2 carat and 1.5 carats. Stones larger than 1.5 carats I recommend only for large diamond portfolios. Stick to the higher clarity grade basically flawless through VS1. And by only round brilliant cut stones unmounted phone within the range of acceptable portions covered earlier. These suggestions will probably change as supplies become more scarce and testament increases. 10 years ago for example some advisers with want you only to buy D flawless stones. So even the most conservative advisers now recommend a minimum D through F color range.
In fact supply may become operative factor in determining what to buy. As this is being written in the early 1980 the Supply situation is worsening. Dealers are happy to get any certified. Cutters are starting to allocate production today best customers and not taking on new clients. Within the coming months I may have to begin once again spending the parameters for investment quality goods to include I and J colors in VS to clarity. After all what could is recommending and G VVS2 there are none available?
It is abundantly clear that off on certified diamonds will continue to appreciate and value. When you purchase a one carat D flawless or half carat H CVS to addition both appreciate faster than inflation. My basic rule first to hold by the best diamonds within your price range. My approach is always by quality so I recommend that honest investor go to a smaller size. Find a three-quarter carat or half carat stone which of coming to growing demand acceptance in a highly liquid is preferable to buying a poor quality one carat diamond.
Quality aside the question of size is very important. It involves a trade off between appreciation in the quiddity. These are two big considerations and devising time portfolio even if it is a portfolio of just one stone. You must decide whether appreciation liquidity as in the use of sale is your first priority. Generally speaking the larger and more expensive stones have appreciated more than the smaller stones. At the same time however at these tunes are usually more difficult and time-consuming to liquidate. So this must be taken into consideration. And don't forget you can't cut the diamond in half. If you have a $30,000 diamond and you suddenly need $15,000 for some purpose you can't sell half the diamond.