Diamonds as an investment

By Samrat Zaveri, Managing Director, Trendsmith.

• Diamonds are convertible worldwide and are the only gemstones that adhere to international standards. 
• Do some research in the market before purchasing diamonds. 
• Be aware that any investment involves some degree of risk. 
• Avoid short term investment in diamonds. A clever investor may find that he can turn illiquidity to his advantage, but this will also require patience. 
• Be patient and wait until the right investment opportunity arises. Wait till the investment can be resold and liquidated profitably. 
• A smart investor should buy diamond jewellery which are out of fashion, and resell them when the demand is stronger. 
• If an investor wishes to work with a jeweller, he should be prepared to make rapid decisions, as buying opportunities may be transient.