The economy can always have its ups and downs, but for long-term investments diamonds are always a good choice. There’s no need to take a trip to an international diamond mine when there are so many local retailers selling them in all shapes and sizes. High-end retailers have them in various price ranges, from under $1,000 to more than $10,000. Carat sizes can vary, but the clarity of the stone is a better indication of its value than size alone.
These versatile gems can be worn as rings, necklaces, pendants or earrings. Diamond cuts can include princess, round, heart, oval, pear and marquise. Depending on the size, they can either be displayed as a single stone or combined with other precious gems for a dazzling look. Professional gemologists at retail stores like Skydell Design Corp. can advise customers which cut or style is right for them.

Throughout history they have inspired strong emotions because of their appearance and value. One of the reasons behind their high desirability may be the simple economic law of supply and demand. There are only a handful of diamond mines in the world and production is limited, so their scarcity keeps the price ranges relatively high.
• Eighty percent of the diamonds extracted are unusable because of poor quality.
• Only 20 percent of what gets mined can be used for jewelry.
• Of that 20 percent, only 5 percent are at least one carat in size.
Part of their popularity stems from the fact that these gems are an alternative to stocks and bonds and they can hold their value better than paper money. They can withstand economic downturns and inflation and unlike other investments, they steadily increase in value. In some cultures people mistrust financial institutions, but some may consider a stash of diamonds better than cash. Experts say that at least 15 percent of wealth is portable, and diamonds are an internationally accepted currency.
Even with the availability of synthetic diamonds on the market people seem to want the real thing. At one time investing in diamonds was only for the wealthy, but the Internet has changed all that. They are more accessible now than ever before, and individuals acquiring one don’t have to pay capital gain or possession taxes. Perhaps that’s why financially-savvy investors place such great importance on owning one.