Will diamonds increase in value?

Here we pose the question, will diamonds continue to increase in value?

The simple answer is yes, and no… As is the case with most natural diamonds, the answer is not flawless. Diamond values have fluctuated greatly over the years - from the booming success of De Beers “a diamond is forever” campaign to the Great Recession, it is clear that diamond prices are a reflection of several market trends. A diamond purchased in the 1960s would likely be worth considerably more today. However, there are many qualities of a diamond that need to be scrutinised which will determine how value will fair over time. Let’s do a quick recap on the basics of a diamond – namely the 4 C’s! Colour, Clarity, Carat and Cut. All of these characteristics play a role in the stones intrinsic value, and the better the grading, the higher the value.

^{A Victorian yellow gold, diamond, and emerald bangle}

^{Sold for £19,000}

The most notorious influencer on the value of diamonds, is that of supply and demand. The rarer the stone, the higher the price. An oversupply of anything will naturally undermine the value. Natural white flawless diamonds are far more difficult to come by than an included slightly tinted stone, whilst a natural fancy coloured diamond is even more scarce.

Truly rare diamonds are those of exceptional quality reds, blues and pinks. Natural fancy red diamonds are so rare that it is believed as few as 20 – 30 are in known existence. This rarity is what will drive the value to increase more rapidly, both the limited supply and high demand as well as inflation. Diamonds with imperfections and lower grading are not nearly as rare or valued, and therefore are less likely to appreciate over time.

^{An impressive antique collet-set diamond lavliere necklace}

^{Sold for £23,000}

In short, diamonds are subject to the fluctuations of supply and demand, so the rarer a diamond is, the more likely it will appreciate in value over time.

To protect and ensure a stone retains and hopefully increases its value over the years, here are a few tips to keep in mind.

• Always get your diamond certified by recognised gemmological experts, such as De Beers (who Dawsons work closely with) or the GIA (Gemmological Institute of America). This certification will verify authenticity and enhance the value of the stone(s).
• Remember that whilst diamonds are one of the toughest substances in the world, they should still be removed during aggressive activities like gardening or sports, as it is possible to damage a diamond, which may cause a chip or a fracture.
• Never store your diamonds close together, they can scratch each other.

Do you have any diamond jewellery that you are looking to sell?

The team of experts at Dawsons are always happy to provide a free appraisal in person at our saleroom in London, our valuation office in Berkshire, or from the comfort of your own home via a home visit or our online valuation service.

We can also provide insurance valuations, where required

Please do get in touch, we would love to hear from you.

0207 431 9445   info@DawsonsAuctions.co.uk