In times of economic upheaval, there are always people who like to think that investing your money to make a quick buck is the best way to turn loss into profit. There are also new ideas about making your money back quickly, “get-rich-quick” investments, so to speak. Investing in diamonds is not one of those ideas. Pouring your cash into these prehistoric stones will, in most situations, not result in any immediately profitable scenario; but if you are shrewd and willing to research just what you are sinking your hard earned money into, diamonds are a wise investment. Not only are they a superb form of “portable wealth”, but they are extremely useful in times of hyper-inflation due to their steady value and consumer demand. Investing in diamonds requires a dedicated vision for quality and beauty. It is definitely a venture that takes money to make money, but if you are patient, you will see a return. And if you spend your money wisely, you will see a very profitable one.

Before an investor can start a diamond portfolio, there are a few preparations to make. Learning about your investment is the first step. Learn about diamonds; about what makes them so valuable and how they come to be valuable. Then, as with any investment, figure out your budget and stick to it. You should also decide if you would like to purchase loose diamonds or diamonds in settings (jewelry.) Loose diamonds are easier to sell as not everyone likes the same settings, but jewelry can be worn and appreciated. Finally, research diamond dealers. In every industry, there are people willing to part you from your money with mediocre goods in return; the diamond industry is no different. Be sure to find a dealer you trust with good recommendations.

Here are some tips on finding the right diamonds for you:

• Always look to the 4 C’s (Cut, Colour, Clarity, Carat) before buying. Make sure you know what you are looking at.
• Choose diamonds that you can, at some point in the future, resell. Classic cuts are a much better choice than fashionable cuts; round and brilliant cut diamonds are usually the best investment stones.
• Don’t bother with anything under 0.5 carats - from a true investment standpoint these are most likely too small to be profitable.
• Try to find anything from medium quality and above as long as they have no imperfections or discolorations.
• Try to look at the stone in a natural versus fluorescent light so there is no chance of the diamond appearing whiter than it actually is.
• Look at your stones loose before you purchase them. Settings can hide flaws so make sure you can see the stone from every angle.
• Take your stones to independent appraisers (people that are not linked to any specific dealer or store).

Investing in diamonds is not a short-term gamble. It is something that takes time, patience and a love of the gem itself. The diamond has proven valuable and desirable for thousands of years and will always be “a girl’s best friend.” Above all, the key to this venture is being happy with your choice, and if you choose to purchase these lovely stones, then you can be sure that someone - whether it be you or a recipient - will be thrilled.

Lilly Gordon is a freelance web writer. She is interested in and has written about, a variety of topics. She is especially enthusiastic about investment options and diamond jewelry.