Lab Diamond Investments Study and Evaluation
Today we fall light on whether Diamond Investment is good or worse because the investment return depends on economic factors like the market, government trade and operational policies, and industry influencers.
Diamonds for investments allow the investor to make better ROI. Now, all the investors want a better interest return and price on their investment. But, a diamond for investment guarantees that investors can make their portfolio of tremendous earnings. Diamond for investment is a good idea because it carries prestige and goodwill with itself.
Our main topic for the discussion is that can a diamond investment is better than the stock market investment and if then what is the reasons for that?
Let's start our journey to understand about diamond investment and necessary tips will be considers when buying or investing in a diamond.
First, we take the diamond’s basic information, which can help to invest in the right way with accuracy and security. In Diamond, there’s a possibility to get more Return On Investment ahead of fixed assets like houses and land.
Fixed asset value decreases when it will be purchases, and it’s difficult to sell quickly. It demands more time to acquire from another person from a lengthy procedure. Thus, diamonds be a savior option for investments, its called as cash or cash equivalent assets of all time.
What is Diamond?
Diamonds are the complex form of carbon found in Mines and laboratories. Mined diamonds are natural, and it’s making process is 100% inartificial because it is a real carbon form. Lab grown diamonds known as man made diamonds to manufactured in the laboratory. Diamond is known as carbon crystal, which is harder to break with a hammer.
In Diamonds, the sparkle reflection plays a key role in increasing the value from its actual price. That’s why the diamond price decided with its 4C’s of diamonds that contains color, clarity, carat and cut. The diamond's clarity and color grade decides the light reflection.
Two types of diamonds are available in the market: natural diamonds or real diamonds, while the other type is labeled as lab-grown diamonds and artificial diamonds. Natural diamonds and lab grown diamonds have the same properties, a carbon, but the difference is their birthplace.
A. Natural diamonds
Natural diamonds took birth in the mines, which is a total formation of chemical involvement with the earth’s lava and tiny shaped rocks, which became cool after a particular time gap.
In the Natural Diamond foundation process, no artificial chemical is used because they were discovered in the hundreds of miles where the experiment took the lives of mining workers, sometimes maybe. Instead, the Miners drilled the rocks and surfaces, and precious natural diamonds have their place on another side.
As a result, Natural diamonds have more price and value for having the real form of carbon. Thus, natural diamonds are better for the investments.
B. Lab grown diamonds
Conversely, lab grown diamonds have a different making process than real diamonds. In lab diamonds, the crystal seed is pressurized by carbon to take shape as natural diamonds.
After getting a rectangular shape, the diamond seed brings out to collaborate with a cool atmosphere. The cooling process turns the diamond formation into rough diamonds (natural diamonds when it is found in the mine). So it's ready for the cutting and polishing process. This is the lab grown diamond making process.
Shop now Lab diamonds
General Electric Company founded this process in 1950. Crystal seed is a small piece of carbon, so lab diamonds have been a form of natural diamonds since their making, which I describe here. Carbon seed is placed under the chamber and pressurized for 3-4 weeks in the CVD process.
Lab diamond is eco-friendly and price friendly for these reasons they are investable for having the same appearance as natural diamonds. Lab grown diamonds are the investable factors which gives the better ROI.
As an Investor, you want to acknowledge the essential difference between natural diamonds and lab-grown diamonds because it is the only fact which turns your typical investment into profitable returns.
Natural diamonds have more prices than lab diamonds due to direct and indirect expenses occurring in the manufacturing unit. While in lab diamonds direct and indirect expenditures were held in less amount. So, the total benefit is returned to the buyer at a lower price.
Which factors influenced for investing in natural diamond or lab-grown?
When discussing influence factors to invest in natural or lab-grown diamonds, it is their resale value, maintenance costs, a big player in the industry, and government policy on international trade. Investors always considered making more n more profit from investments with expected ratios.
There’s a no difference is found in natural and lab grown diamonds due to the same properties and characteristics. But, the origin place of those two types of diamonds became the price and investing decider. Take an inspection of the resale value of natural diamonds and lab grown diamonds, affecting your investing decisions.
A. Resale values of natural diamonds
Resale values of natural diamonds give less amount of loss instead invest in the market because natural diamonds hold their value after the depreciation value, and it is the kingmaker for the investor. Natural diamond resale value is counted at 90% of their first-time purchased price for having the natural carbon elements.
Suppose you bought 1 carat round shape Diamond at $6000 with authenticate certification. Within one year of purchase, you want to resale the Diamond; then you expect at least $4500-5000 to come to your wallet, and it’s right-thinking as an investor.
So here I gave a price after depreciation value. You lose only $500-1000 price, which is a very affordable loss to the sudden drop value of shares and property value. That’s why I’m talking about investing in Natural Diamonds for a better return on investment.
The resale value of natural diamonds is less stabilized than lab diamond's resale price. Natural diamonds are holding their value in all the situations. But, in natural diamonds, the components are found naturally without adding any artificial elements, so some people understand that it had prestige and fame since their foundation.
See the other side for investment to consider the Lab-created Diamond's resale value.
B. Resale value of lab grown diamonds
The resale value of lab grown diamond is less than the natural diamond's resale price. Lab Made Diamonds carry less price than Natural Diamonds, so there’s less returns that come to the investor’s pocket. Of course, as an investor, you want to benefit from price fluctuation from your investment.
But, In lab grown diamond, there’s maybe a chance to get the benefit of profit. Some big players in the diamond industry are influenced by the fact that lab diamonds have no benefits as natural diamonds. In contrast, I’m saying that lab diamonds carry the same properties and shapes, but people are influenced by word of mouth.
Lab diamond’s lower resale value has caused the lower purchased price than Natural Diamonds. Lab created diamonds have 30-50% less price than natural diamonds, so the purchased price influences the resale value. But, some key players in the industry said that lab diamonds are useless or not-worthy option for investment.
At the counter answer, I’m trying to say that recently due to the Russia-Ukraine conflict, the natural diamonds company shut theirs doors for employees. At that time, lab grown diamonds becomes the source of employment for diamond grading workers and employees.
There are exceptions for less resale value of lab diamonds due to the impact on people’s thinking. This thinking needs a change, but it’s not far anymore. After five years, lab created diamond will maintain its resale value when people understand its importance. After all, lab created diamonds are made in an eco-friendly process and consider human beings' health.
Maintain costs of lab diamonds and natural diamonds
The maintain cost of lab diamonds and natural diamonds includes insurance and security. If you buy wholesale diamonds from reputed, solvent, and authenticated jewelers, it demands proper maintenance, even if you’re engraving it in engagement rings or wedding bands.
When you don’t want to carve diamonds in jewelry, you must take proper care of the diamonds to secure them in the bank locker and acquire safe logistics place. Don’t forget to take a certification of diamonds because it helps clear the insurance policy easily. Secure the diamond certificate in proper condition.
Your return on investment decides by the transparent and trustworthy looking diamonds; it’s decided by certification, which doesn't affect from the influence of people. In addition, the maintenance cost of diamond is far less than other investment options. So, you can turn your mind to investing capital in diamonds.
How to create a proper strategy for investing in diamonds?
To create a proper strategy for investing investing in diamonds, constantly watch the market’s trends and influencers’ information. Read any micro-to-micro newspaper or articles regarding any diamond industry-related news because you think it is small news that never affects the investment boat. But you have also considered that information in your investment for diamonds.
Read the government policies for trading or investing in the diamond industry and note the amendment points in that respected investing policies. To take the price fluctuation benefits of diamonds, regularly update yourself on the news channels which telecast the information regarding diamonds, which decide on market factors like its demands and supplies.
Frequently read the trend of customer's taste for visiting a huge diamond manufacturing company because they’ll be given an update or hint for investing. You have to understand that information and focus on international exhibition shows.
Today, you have the internet, so you can easily see the trends of buyers virtually to make your investment strategy flexible and up to date. So, it may decrease the risk of less capital return on investment. But, always take a decision with proper study and evaluation, because some type of information's are works as concentration breaker. Thus, take a decision in full of aware sense.
Between natural diamonds and lab grown diamonds, in which should I invest?
The answer is obvious, and it is natural diamonds. You should invest your capital for now in natural diamonds. Because above, you saw the inflexibility in the price for natural diamonds. But it still recovers your investing cost after depreciation. So you can go with real diamonds for capital investment.
Before you reach any conclusion or final thoughts about investing capital, read the scenarios for investing in natural diamonds and lab-grown diamonds.
A. Investing capital in natural diamonds
After seeing the natural diamonds and lab-grown diamonds making process and resale value, you better understand that natural diamond is the best option for investment this time. But remember that natural diamonds demand more capital for investment.
There’s one instability you can find, and that is the sudden rejections from countries' dealers due to conflict, war, and pandemics. So, your capital may be trapped under the net of the natural diamond rejection, and you can lose the expected return. Here, I’m not talking about the myth but its fact, which discloses below.
On 24th February 2022, Russia started an invasion of Ukraine’s surface. Then after Russia’s natural diamond mine, Alrosa faced a ban from the USA. As a result, significant diamond buyers like the USA and UK did not accept Russia's exported natural diamonds.
Thus, worldwide natural diamond merchants and manufacturers were felt shocked because the USA banned Alrosa Mine Diamonds, which held a 30% market cap of the worldwide natural diamond market. As a diamond investor, you also felt worries; after all, investors expect massive profit return on investment. But here, your expectations inverted down. What should you do?
So, the natural diamond manufacturers refused to forward their business for specific times. This factor directly affects the workers and causes employees to lose their job. This type of instability would be faced by investors when investing in natural diamonds. But it’s not regular, and I never tell to don’t invest in mined diamonds.
You have to absorb and make predictions about the diamond industry by visiting the articles of diamond manufacturer interviews. Also, concentrating on trending news related to De Beers Group.
B. Investment scenario in lab grown diamonds
When you select lab grown diamonds for investment, there is stability available. Lab diamonds don’t influence by agenda or propaganda because they don’t have any particular place to be found as natural diamonds. This is the most beneficial fact about lab diamonds for investments. From this fact, it reached the world’s every corner.
Lab made diamonds are created with a process that is eco-conscious and human-friendly.
Deciding to invest in lab grown diamonds then, it is appreciated because investor's capital is secured due to the vast acceptance of their quality. In lab diamond, the more beneficial thing is the environmentally-friendly and using recycled water consuming process.
Many countries' governments are also taking notice of the lab grown siamond industry development. Thus, lab diamonds are a good option for investing capital and don’t pull it within one year if you are preparing for massive long-term profit./p>
In the next five years, lab grown diamonds maybe accommodate the diamond industry, and its value will also be hiked. So, as an investor can get more Return On Investment in lab diamonds than property investment even after the depreciative value. So, be ready to earn accurately from investment in the diamonds.
Now it’s investor's call to select a lab grown diamond or natural diamond for investment. This article is only for advice or acknowledgment and depends on personal experience.
Investors have to decide can natural diamond gives beneficial factors to investment or if lab grown diamonds will allocate more return on the investment. The actual scenario for investing in diamonds may differ from the described or actual way. It’s investor's sole discretion to invest in diamonds or not, which gives the better return?
We’re not responsible for any type of loss from the investment in diamonds. Investors have to investigate the ways and make predictions about the diamond industry. Otherwise, there may be a chance to got the reverse result from the investment expect.
Investors can follow the strategy which describes upon for better understanding and clarity. So, they have to make a decision with wisdom and intelligence after inspecting the world diamond market trends. It’s investor's decision what they have to earn for return on capital investment.
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