Diamonds Appreciate in Value

• Unlike some high-ticket items like televisions and automobiles, diamonds do appreciate in value. That said, diamonds usually appreciate at about the same rate as inflation. They are not a get-rich-quick investment, but they do hold their value over time.
  
  

Costs to Consider

• Most consumers purchase their diamonds as part of a piece of jewelry. While diamonds do have resale value, the setting that the diamond is in usually does not. Jewelry store purchases are usually marked up and are subject to sales tax. All of these extra fees are not part of the market value of the diamond, and will increase the amount of time it takes for a piece of diamond jewelry to appreciate in value.
  
  

What to Look for When Investing in a Diamond

• Avoid trendy cuts which go in and out of fashion; stick with a round brilliant-cut diamond you can sell down the road. A diamond that can be worn most of the time may be a better investment because there is less of a chance it will be stolen in a burglary.