Dealing with Loose Diamonds - A few tips

In the modern world, there are few more potent symbols of wealth than the diamond. Whether fashioned into jeweler or simple loose diamonds, diamonds are one of the most treasured gifts, used in declarations of love and in the formation of political alliances. But diamonds are not only luxury items - they also have real economic importance. If you have some spare capital and are looking for the right investment, loose diamonds could be an excellent choice.

The market for loose diamonds is very different from that for diamond jewelry. Loose diamonds are mostly sought after by highly educsted and experienced collectors as well as by those involved at the manufacturing end of the jewelry business. As a new investor in loose diamonds, you'll have to learn fast to keep up. There are plenty of bargains to be had in loose diamonds, but only if you know what you're doing.

Here are a few good tips that will ensure not only will you buy a diamond to be cherished forever, but you'll have fun doing it!

1. First of all, a little education goes a long way. Be sure to educate yourself on the four Cs — cut, carat, clarity, and color. Knowing a little bit about diamonds and which questions to ask will ensure you get what you pay for.

2. Jewelry pricing can be pretty complex, so your best bet when comparing prices is to compare diamonds of the same size, shape, cut, color, and clarity, as well as those that have similar mountings.

3. Instead of comparing the total cost of diamonds, compare per-carat diamond prices. How do you do this? By multiplying the carat weight times the price per carat.

4. Know that all grades are not created equal. Jewelers will grade their diamonds differently, so it's important for you to know a bit about how to judge a diamond for yourself. Some labs also have more stringent grading standards than others. It's important that what appears on the certificate appears to be what you see.

5. If diamonds are advertised at a significantly reduced price, there is most likely something wrong with them. Also, if you buy loose diamonds on eBay, be sure you are dealing with a reputable seller. Be very careful before you buy!

6. Be realistic. Come up with a budget, as well as the type of ring you would like. Compromising is key if you want to stay within budget and find a good buy. Decide which of the four Cs are most important to you, and which you can compromise on.

7. Get the lab report for your diamond, especially if it is expensive. A lab report is basically an independent assessment of your stone, and will ensure that you haven't bought a treated or processed diamond.

8. Finally, ask yourself if you love the diamond. Is it brilliant and does it sparkles? Does it look good on your hand and fit your lifestyle? Remember, the best diamond for you is the one you love the most.