Sunday, July 11, 2010

Loose Diamonds For Sale: Tips To Minimize Risk

Loose DiamondsNo doubt that the loose diamonds are one potential investment field. However if you are not familiar with the diamond industry you may need to discover few important issues before risking your money. Every investment market is distinct but it is easy for one to get too obsessed with the scattering information, either true or false, and end up not making any profit. Here are few selling tips to take note before starting off your investment line.

Firstly, look for grading certificates. Any loose diamonds for sale should come along with a grading certificate. Generally it is an elaborated certified report about the diamond which includes details about the color, cut, carat and clarity as well as the shape and dimension. Besides, the certificate should be issued by a laboratory gemologist who will also state the imperfections found in the diamond.

This documentation will play the role of an identification card for the diamond, important to be a reference for insurance companies or potential customers. You are not advised not to buy or sell loose diamonds which do not come with such legal certificates.

Next you should ensure that the diamonds have the appraisal certificate. This certificate may be a more difficult document than the grading certificate. Since diamonds, like other commodity, are tradable in the market thus it is really hard to evaluate a precise value. The value of diamonds will fluctuate according to the economical trends and market movements. However for insurance purposes, this is a compulsory prerequisite document. Nevertheless this selling tips is not fully practiced as the acknowledgment of the document depends on the interest of the insurance company to use the certification as a proof of assessment. The appraisal certificate can be created by any respectable diamond company.

Apart from those certificates, you may also require another legal documentation – the origin certificate. Since the worth of diamonds is not necessarily judged through the aspects of the diamond itself, there is also abundance of worry over how diamonds are mined. These diamonds are known as the blood diamonds.Loose Diamonds

You should not ever lay hands upon the blood diamonds. The value may seem good and is certainly profitable if you can sell the loose diamonds but the prices of blood diamonds will never increase due to opposition towards the diamonds.

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