How can I buy loose diamonds on a limited budget?

It’s unlikely that you’ve visited a diamond dealer to purchase loose diamonds. It’s even less likely that you immediately buy a few perfect cut, 5-carat diamonds. Most people have a limited budget to spend, yet more and more people would like to invest with that limited budget. The diamond market is growing and is accessible for investors with a wide range of budgets. Investment diamonds still have a reputation for being far too expensive, but that’s not always the case. We’ll explain how to keep your diamonds affordable.

What role does the carat weight play?

As the carat weight increases, the price also increases exponentially. For example, a 4.00 carat diamond won’t be twice the price of a 2.00 carat diamond with the same properties. It’s more likely to be three times the price. The price also increases exponentially as you near the most popular sizes, such as 0.50, 1.00, 1.25 carat, etc. because investors are most interested in buying loose diamonds with those carat weights.

Therefore, it’s a smart move to stick to those so-called magic sizes. A loose diamond of 1.93 carats might have about the same size as one with 2.00 carats, but the difference in price can be disproportionate.

Image by BNT Diamonds shows the importance of carat weight in buying loose diamonds

Because the price increases exponentially as the carat weight increases, it may make more sense to buy multiple smaller diamonds than one large one. Jewellery with multiple smaller diamonds are less expensive compared to one single diamond with the same carat weight. This also applies to loose diamonds.

For example, three 0.50-carat diamonds are a lot less expensive than a 1.50-carat diamond. We do advise you to look at 1-carat diamonds or more if you want to buy loose diamonds as an investment.

How does colour affect the price?

The colour, or rather the lack of colour, is another major influence on the price of loose white diamonds. It’s hard to see the difference between almost-white diamonds with the naked eye. By choosing a colour grade that doesn’t have a yellow tint to the naked eye, you can save a lot of money.

The highest colour grades D, E and F are categorised as “colourless”. To the naked eye, diamonds with colours G and H are the same colour as the colourless diamonds, but they’re a little less valuable. You need a microscope to see the difference, but we still recommend going for colours D, E, F, or G for investment diamonds. If you want your diamond as part of a piece of jewellery, then a H diamond is a good choice.

Image by BNT Diamonds shows the importance of colour in buying loose diamonds

However, the colour grade of coloured diamonds is completely different. You can also make a smart investment with these, but you must keep other aspects in mind if you go down this avenue.

Which clarity is affordable?

The next aspect that influences pricing is clarity. At BNT Diamonds, we offer diamonds with clarities varying from FL to VS1.

All diamonds have impurities, but many of them aren’t visible to the naked eye. The highest level of clarity has little to no effect on its beauty or look compared to the VS1 clarity level, but it does have a major effect on the price. You could consider looking for loose diamonds with a lower level of clarity to save money, without sacrificing beauty. For investments, we recommend a clarity of VS1 and higher.

Image by BNT Diamonds shows the importance of clarity when buying loose diamonds

Why does cut matter?

The cut of a diamond has a huge impact on its appearance and brilliance, as well as its price. Some diamond cuts, like oval and pear cut diamonds, are very popular because they sometimes look bigger than round or square diamonds of the same carat weight. However, that’s not always the case.

In general, round diamonds are more sought after for investments because they’re more popular and can thus be resold more easily.

Image by BNT Diamonds shows the importance of cut shape when buying loose diamonds

What's the perfect diamond depth?

Did you know that diamonds of the same carat weight and cut can have different sizes? The cut of the diamond can influence the size of the diamond in millimetres. Diamonds with a relatively shallow cut may look wider and longer, but that’s misleading. Those diamonds have poor proportions, making their brilliance less than optimal. And isn’t that what you’re looking for when buying (loose) diamonds?

Get advice from our experts at BNT Diamonds. We know exactly which depths certain diamonds should have to shine. Make sure you pick the diamond with the perfect depth and proportions, even if it costs more.

Image by BNT Diamonds shows the important of depth when buying loose diamonds

How does the place of purchase influence the price?

Most people underestimate how much the purchase price has an influence on the price. However, this is something you should really keep in mind if you have a limited budget. The mark-up for loose diamonds is much lower online, while it can be up to 200% at a jewellery store. This difference is due to low additional costs online. So, it’s worth the effort buying your loose diamonds online at BNT Diamonds.

Thanks to a large network of diamond producers, we’re able to purchase diamonds directly from the source, which explains our exceptional diamond prices. Buying loose diamonds on a limited budget is therefore perfectly possible.

Which affordable investment diamonds does BNT Diamonds offer? Take a look, ask our experts for advice or call a diamond advisor directly at +32 3 201 24 90.

Author: San Meuleman
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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