Tuesday 22 December 2009

Buying A Diamond

By Owen Jones

Everybody loves diamonds and no one looks bad in diamonds, do they? It is not actually within the scope of this article to recommend whether diamonds are a first-class investment or not, but their supposed worth is enormous. Instead, I want to discuss where the best place to procure a diamond is, because it is more important that you procure your diamond from a respectable merchant with a warranty than that you believe you got a good trade on eBay by means of purchasing somebody's grandmother's engagement ring, which may not be genuine.

Therefore, before you begin shopping for diamonds, consider dealing with a bonded jeweller. Bonded jewellers sell bonded diamonds and there are very few bonded jewellers in the world. In fact, of the jewellers in the world, only about 5% of them are bonded.

Buying a bonded diamond will cost more than buying a non-bonded diamond, but when you consider what you get with the bonded alternative, you will see that it is well worth the additional expenditure.

First, bonded diamonds have a buy-back guarantee for the life of the diamond. No matter how long you keep the diamond, you can take it back to the bonded jeweller and sell it back to him or her, for a 100% refund.

If a jeweller does not offer a 100% buy-back assurance, for the life of the diamond, then you ought to take a closer look at the diamond to see what is amiss with it. Just joking, they will always offer you a 100% buy-back guarantee or tell you why not.

Bonded diamonds also have a breakage policy. If the stone breaks or chips, the bonded jeweller will replace it with a new one - one time. No jeweller would ever offer such a policy on any stone that was not 100% natural, so just the offer of such a policy should give you peace of mind concerning the quality of the diamond. Bonded diamonds are natural and untreated.

Bonded diamonds increase in worth, with a fixed appreciation rate that is calculated to keep up with inflation. This means that a diamond that is worth a particular amount of money today will be valued at more in the future, as the price of diamonds continues to rise. This normally does not relate to buy-backs, although. It typically applies to trade-ins.

On the other hand, by buying a bonded diamond, you are protected against the prospect of a market collapse. If a market collapse does happen, the price of diamonds will go down. However, the bonded jeweller guarantees to reimburse you the discrepancy between what the diamond is now worth and what you paid for it before the market crash.

It could be tricky to find a bonded jeweller in your vicinity, but if you can, this is who you need to do business with, as opposed to dealing with a non-bonded jeweller. Specifically inform the jeweller that you are only interested in bonded diamonds. You can discover a bonded jeweller in your area by using various online resources like Google or Yahoo, or by calling the local jewellery stores.

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