Indians have a special bond with jewellery. Whether it’s for your wife, sister, or daughter, gifting something precious on a special occasion is a tradition many cherish. However, in the excitement of buying jewellery, we often tend to overlook the financial side. This is especially true with diamonds, where it’s crucial to consider factors that could affect the long-term value of your purchase.
Two things that comes to our mind while purchasing jewellery. One is price and second is design. But, buying diamond jewellery is costly, therefore one needs to think beyond design and price. Here are things to keep in mind to unlock the real financial value of your diamond jewellery!
Understanding The 4Cs
Diamonds are evaluated based on four primary aspects:
- Cut: This is a key factor that affects how a diamond reflects light and determines its brilliance. A well-cut diamond sparkles more.
- Clarity: This refers to the presence of internal or external imperfections. Fewer inclusions mean higher clarity and value
- Colour: Diamonds range from colourless to light yellow. Colourless diamonds are rarer and more valuable.
- Carat Weight: This measures the diamond’s size. While larger diamonds are more expensive, quality should not be compromised for size.
GII Certification Authenticity
If you are a first-time buyer, you must know that the first thing before making a payment for your jewellery is to check the certification. Always purchase certified diamond jewellery as it will help you create an asset for future. Reputed laboratories like the Gemological Institute of India (GII) provide detailed reports on a diamond’s quality. This certification ensures the authenticity and value of your purchase.
Natural Vs Lab-Grown Diamonds
To reduce cost and introduce faster processing time, lab-grown diamonds have become more prevalent. While they are identical to natural diamonds and often more affordable, their resale value is typically lower. It’s essential to decide which type aligns with your preferences and investment goals. However, you cannot identify the difference between the two as a buyer unless you emphasize on this and wish to know about it before the purchase.
Reputed Jewellers
Buying diamond jewellery from established jewellers ensures trust and quality. Some brands partner with global entities to sell natural diamonds, ensuring authenticity and quality. You can check what suits your pocket and whether you want just a jewellery or wish to create a financial asset as well.
Buyback Policy
A buyback policy is crucial when purchasing diamond jewellery. It allows you to sell the jewellery back to the jeweller at a predetermined value, providing financial flexibility in the future. It is good to understand the terms, including the percentage of the original price you can expect to receive and any conditions that may apply.
Jewellery Insurance
Insurance is an often-overlooked aspect of buying diamond jewellery. Given the substantial value, insuring your jewellery against theft, loss, or damage is wise. Many jewellers offer insurance options free of cost at the time of purchase. You must also check whether the jewellery has insurance or not. This protection ensures peace of mind, knowing your valuable possession is covered.
Purchasing diamond jewellery calls for thoughtful planning to ensure it holds value over time. As a buyer you must know that the real charm to buy a diamond lies not just in its sparkle, but also in the quality and purity. It is after all not just jewellery but a financial asset for your future.
(The writer is DGM, Communication, BankBazaar.com and this article has been published as part of a special arrangement with BankBazaar)
