Is it worth buying solitaire diamond?

Answered by Ricardo McCardle

In my personal experience, buying a solitaire diamond can be a worthwhile investment, but it’s important to consider several factors before making a decision. One of the key aspects to consider is the market value of the diamond and how much you can expect to fetch if you decide to sell it in the future.

Ideally, a solitaire diamond can fetch up to 95% of its market value. This means that if you were to purchase a diamond for $10,000, you could potentially sell it for around $9,500 in the future. However, it’s important to note that this figure could be lower for smaller diamonds, ranging from 85-90% of the market value.

It’s also worth considering the buy-back value offered by established jewellers. These jewellers may offer a buy-back value of around 85% for diamonds purchased from them. This means that if you were to buy a diamond from a reputable jeweller and later decide to sell it back to them, you could expect to receive around 85% of the diamond’s market value.

However, it’s important to keep in mind that the returns on a solitaire diamond could be much lower if you decide to sell it to someone other than the jeweller you purchased it from. In such cases, the buy-back value may be significantly lower, potentially impacting the overall return on your investment.

Aside from the potential resale value, there are other factors to consider when buying a solitaire diamond. The sentimental value attached to a diamond can be priceless, especially if it is bought for a special occasion such as an engagement or anniversary. The beauty and durability of a solitaire diamond also make it a timeless piece of jewelry that can be passed down through generations.

In terms of financial investment, it’s important to understand that the value of diamonds can fluctuate over time. While they are generally considered a stable investment, there is always a level of risk involved. Factors such as changes in market demand, economic conditions, and the overall quality of the diamond can all affect its value.

Ultimately, the decision to buy a solitaire diamond should be based on a combination of factors, including personal preference, sentimental value, and potential financial returns. It’s important to do thorough research, seek advice from reputable jewellers, and consider your own financial situation before making a purchase.