How to evaluate a diamond for investment in India?

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How to evaluate a diamond for investment in India?
The evaluation of a diamond is done on the basis of grades. You either have to take a professional opinion before buying diamonds or you should be aware of the "C"s that are generally used in diamond purchase terminology.

Carat Weight

The first and most important C is the carat weight. One carat weight is equivalent to 0.2 grams. The carat weight is equal to 100 points similar to US Dollar pennies. Now what's the significance of carat weight? The simple reason is that the more the carat weight, more is the cost of the diamond. This is due to the fact that it is difficult to polish and find a larger stone.

Color Aspect

Second important aspect while purchasing the diamond is to check the color. Most of the amateur investors think that diamonds are colorless, which is not the reality. The diamonds are found in almost all colors. There is a definite color grading scale in the diamonds. The cutting and polishing has to do majorly on how the diamond is seen. This also means that the larger the size of a diamond, the more colors it will portray.

Clarity Factor

It is advised that the purchaser of diamond must be fully cautious of this stage. This is because many dubious deals occur in diamond trading where the investor is often fooled based on the clarity. Those who are not in the business or first time buyers are very easily carried away by the marketing person's claims. There are specific grades that have been assigned to the clarity of the diamond based on the flawlessness, blemishness and the degrees of starches, polishing and roughness. The more the clarity, lesser are the defects are lesser should be the price, but this can be judged only by an expert.

Clarity Enhancements

Some of the colorless diamonds are treated artificially to make them look good. The scars and cuts are treated in a manner that a diamond looks flawless. This is done by fracture filling. The light is expected to pass through it after the treatment and this increases the clarity.

Cut Quality

The better the cutting of the diamond, higher is its price. This cutting is done to enhance the color of the diamond. This is sometimes done to do away with any inclusions and to increase the color and style in the stone.

Diamond Certification

The certified diamond pieces are more authentic and safer than others. The pieces can be certified at International Gemological Laboratories and Institute (IGL&I), GIA-Mumbai etc. The rate appreciation of certified pieces is better and true price of the piece can also be ascertained with the help of certified report.About the Author:

About the author: Amit Sethi is an MBA (Fin) graduate and a Financial Consultant. He has spent over 10 years in Equity research, Stock broking and Financial Consultancy Sector He can be reached at

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