Diamond investment is analyzed according to the famous theory of 4 C’s.

The analysis of 4 C’s is accepted all over the world. Even the diamonds are being graded on the basis of the 4 C’s. You might be wondering what the theory of the 4 C’s is? Well they stand for color, cut, clarity and carat. Diamonds are being graded according to the type of characteristics a single piece of diamond has and they are graded according to those characteristics. There are many diamond grading institutes all around the world like the Gemological Institute of America famously known as GIA and the European Gemological Society. The diamonds graded by these institutes are the most trusted diamonds. Today the science has so much improved that the scientists are capable of making diamonds in their laboratories by using various types of chemicals and the diamonds produced by the chemicals look exactly like the natural diamonds taken out from the earth’s crust. So a good grading procedure is required to differentiate the natural diamonds and the laboratory made diamonds known as the synthetic diamonds. The natural diamonds taken out from the earth are graded by the institutes to prove that they are natural. Thus the natural diamonds are much more expensive than the synthetic diamonds and are very good for diamond investment.

The colorless diamond is not the only color in which a diamond investment comes.

Diamond comes in various colors like black, green, blue, pink, brown, yellow and red (the rarest). Colorless diamonds are more commonly found in than the colored diamonds. There is a saying that for every single piece of colored diamonds there are ten thousand colorless diamonds available in the market. So a person who does a diamond investment in colored diamond gets more returns than a person who does a diamond investment in colorless diamonds. Diamond investment is also based on the weight of a diamond. A diamond is priced higher when the weight of a diamond is increased. A diamond’s weight is measured in carats. So as the weight of the carats is increased the diamond will be priced higher and the diamond investment will also be priced high. The high priced diamond investment will fetch much more money in return. Thus the weight of a diamond measured in carats also increases the value and profit of diamond investment.

A diamond is also differentiated according to the type of cuts it is being given. There are many different styles and shapes a diamond is being cut according to the demand of the market. The most famous cut is the brilliant cut diamond but there are other types of cuts also available in the market like oval shaped diamond, heart shaped diamond, triangular trillion cut diamond, drop cut diamond, the princess cut etc. The type of cut a diamond is given also puts variations on the weight of a diamond. Thus the type of cut a diamond is being given also changes the price value of the diamond which affects the diamond investment also.

A diamond is also graded according to the type of clarity it possesses. Clarity is the only difference between the natural colored diamond and the synthetic colored diamond. A synthetic diamond contains the same cut, color and carat but the only difference between the synthetic colored diamond and the natural colored diamonds is the clarity the natural diamond possesses. A natural diamond contains a very good depth and clarity which can only be differentiated by the use of high tech tools or by the grades given to a diamond by the diamond grading institute. Thus a natural diamond having good clarity is priced very high but it is good for diamond investment as the returns are far more than the invested amount.