SI1 as an investment

[khal80]

Before coming on to PS, I was always told never to buy an SI1 diamond- its a waste of money

After reading, lurking, and finally joining this site, its seems as if most whom are knowledgeable in the diamond field recommend many SI1's that are "eye clean" or excellently cut etc

But as an investment is it okay to purchase an SI over a VS diamond?

 

[SB621]

In general I think buying any diamond as an investment is a bad idea.

Read this: https://www.pricescope.com/wiki/diamonds/diamond-investing
https://www.pricescope.com/journal/gemstones_diamonds_and_jewelry_investments_are_you_kidding_or_are_you_really_serious


Now if you are buying a dimaond for an ering and are looking to save a bit of money then yes I think buying an SI1 that is eyeclean or at least from 3-4 inches away is fine.

 

[diamondseeker2006]

They are not an investment since you will likely lose money if you choose to sell it in the near future. Yet they do retain value over time. Clarity is personal preference. I prefer VS clarity for my own diamonds because that is more important to me than getting a larger diamond. But it is a good option for those who want to maximize size. The last I heard, Tiffany was selling down to I color and SI1 clarity in their e-rings.

 

[MichelleCarmen]

Have you looked at the going prices for pre-owned diamonds? That should give you a good idea of how much of a loss you'll take. I do think if you buy a piece of jewelry with a VS stone in it, it may be EASIER to resell, however, you still won't be making a profit from the sale.

 

[denverappraiser]

The problem with investing in diamonds is on the sales end. Buying diamonds is easy. Selling diamonds is HARD. Getting higher grades drives the prices up but it doesn't solve this fundamental issue. It's not that it's impossible to make money buying and selling diamonds. I have a fair number of friends who make a living doing exactly that, but they're succeeding at it because they're good salespeople, not because of the gemological properties of what they're selling.

 

[oldminer]

Diamonds are not one of the best ways to invest money in hopes of gaining more value later or even to keep pace with inflation. They do retain some long term value and that may be far better than a fur coat or fancy car after owning it and using it for 20+ years. Once in a great while there is an exception to this rule, but don't plan on it. You invest in diamonds to enjoy them or to see someone else enjoy them. At some distant time, you might contemplate selling the diamond(s), but with inflation and market forces working against you, it is unlikely you will feel like the financial side of the deal was as good as the pleasure side you had already enjoyed.

 

[webdiva]

Buy from a vendor that has a great upgrade policy and you won't have to worry about "investment", which a diamond is certainly not. You can get the most bang for your buck with maximizing cut and having flexible requirements for the other 4 Cs. I personally did that by going with an eye clean I1 that allowed me to get size, color and a gorgeous cut within our budget. An eyeclean SI1 is certainly a great choice!

 

[Paxonator]

You'd really need to know your stuff to make money at it. And it would probably require so much time to find the deals you could make money on it may not even be worth it.

 

[Gypsy]

Neither VS or Si1 are really investment grade. Investment grade is VVS1 or IF, and that's a waste of money for everyday wear.

However, IF and VVS are VERY hard to re-sell, ironically. And SI1 (eyeclean) and VS are much easier to resell. Why? Because consumers are getting increasingly more savvy and realize that VS and Si1 are where the values are at, so there is more demand at those clarities. So when you are reselling, more jewelers will be interested in buying your stone from you if it is at these clarities because they know they can move them.


It's a weird market. The long and short of it though is.... you don't buy diamonds as an investment because they are (for many of the reasons mentioned in this thread) a difficult one.

 

[SB621]

However, IF and VVS are VERY hard to re-sell, ironically. And SI1 (eyeclean) and VS are much easier to resell. Why? Because consumers are getting increasingly more savvy and realize that VS and Si1 are where the values are at, so there is more demand at those clarities. .

Hmmm...never even thought of that...good point Gypsy!