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Monday, December 21, 2009

How To Invest In Diamonds

By Owen Jones

Everybody likes diamonds and no one looks bad in diamonds, do they? It is not really within the remit of this article to propose whether diamonds are a first-class investment or not, but their supposed worth is enormous. Instead, I would like to discuss where the best place to buy a diamond is, because it is more important that you buy your diamond from a reputable merchant with a guarantee than that you believe you got a good deal on eBay by means of buying somebody's granny's engagement ring, which might not be authentic.

Therefore, before you begin browsing for diamonds, consider dealing with a bonded jeweller. Bonded jewellers sell bonded diamonds and there are not many bonded jewellers in the world. In deed, of the jewellers in the world, only about 5% of them are bonded.

Buying a bonded diamond will cost more than purchasing a non-bonded diamond, but when you look at what you get with the bonded alternative, you will perceive that it is well worth the extra expenditure.

Firstly, bonded diamonds have a buy-back guarantee for the existence of the diamond. No matter how long you keep the diamond, you can return to the bonded jeweller and sell it back to him or her, for a 100% refund.

If a jeweller does not offer a 100% buy-back assurance, for the life of the diamond, then you ought to take a closer look at the diamond to see what is wrong with it. Only joking, they will always offer you a 100% buy-back guarantee or tell you why not.

Bonded diamonds also have a breakage policy. If the stone breaks or chips, the bonded jeweller will replace it with a new one - one time. No jeweller would ever offer such a policy on any stone that was not 100% natural, so just the offer of such a policy should give you peace of mind concerning the quality of the diamond. Bonded diamonds are natural and untreated.

Bonded diamonds improve in value, with a fixed appreciation rate that is designed to keep up with inflation. This means that a diamond that is worth a certain amount of money today will be worth more in the future, as the price of diamonds continues to rise. This generally does not relate to buy-backs, although. It normally applies to trade-ins.

On the other hand, by purchasing a bonded diamond, you are sheltered against the prospect of a market crash. If a market crash occurs, the value of diamonds will drop. However, the bonded jeweller promises to refund you the discrepancy between what the diamond is now worth and what you paid for it before the market crash.

It may be not easy to find a bonded jeweller in your locale, but if you can, this is who you need to do business with, as opposed to dealing with a non-bonded jeweller. Specifically inform the jeweller that you are only interested in bonded diamonds. You can discover a bonded jeweller in your area by exploiting different online resources like Google or Yahoo, or by calling the local jewellery shops. - 23305

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