In April, 2017, Sotheby’s sold the Pink Star — the world’s most expensive diamond — for an incredible $71 million. Diamonds are not only for the world’s top 1% of investors, of course. The price of some diamonds has risen over 350% in just a decade, showing that these brilliant rocks continue to be an interesting source of investment — especially since supply is limited while demand continues to grow.

According to the Soha Diamond Co., it takes a considerable amount of work to mine a diamond weighing as little as one to two karats: “Workers process approximately 7.35 U.S. tons (14,693 U.S. Pounds) of ore in order to recover two carats of rough mined diamond, which would then finish into a one carat, round, brilliant diamond.”

The fact that supply of this commodity is set to fall means one thing: It is always a good time to invest in diamonds, provided you are willing to wait until prices rise.

No Two Diamonds Are Alike

Whether you are considering a loose diamond as a pure investment or you wish to purchase it as a wearable investment, different cuts and grading affect price. The amount of sparkle, or “fire,” that ensues from a diamond depends mostly on how it is cut — the ideal rock should neither be built up too highly, nor flattened.

Facets should be equal in proportion so as to avoid light leakage. Commonly sought cuts include the emerald, cushion, round and princess cut. You will be able to tell the quality of the cut via the grade of the diamond. Opt for “excellent” or “very good” ratings; any less and your diamond may not meet your expectations in terms of investment.

If you are purchasing more than one diamond, try to vary in terms of color and cut.

Clarity Is Key

You should also look carefully at the clarity of a diamond prior to purchase. The Diamond Clarity Scale starts at Flawless (the ideal rock for investment), making its way down to VVS1 and VVS2 (Very Very Slightly Included), VS1 (Very Slightly Included), SI1 AND SI2 (Slightly Included) and I1, I2 and I3 (Included).

For investment purposes, stick to VVs2 at least. In addition, have an expert look at the diamond to identify the number of inclusions. The ratings are actually a general way to classify diamonds, and two in the same classification can have a difference of two or more inclusions.

Thus, every piece should be inspected so as to ensure that you pick the best option available.

Go With A Renowned Retailer

Once you are purchasing from VS1 level up, prices are likely to be similar across designers. If you are keen on purchasing a jewelry piece containing a diamond, go with long-standing jewelry firms that are likely to sell items that will be coveted from generation to generation.

In the same way that a classic cut (rather than a futuristic or even a heart-shaped diamond) is likely to find favor with more future buyers, so too will a classic design like a halo or emerald-shaped ring.

When investing in diamonds, so long as your diamond possesses quality grading, cut and clarity, you are onto a sure thing. This is because supply is bound to become scarcer as the years go by, yet the popularity of diamonds never ceases to wane.

Diamonds are an investment that can be enjoyed and worn while continuing to grow in value. The one proviso when it comes to purchasing jewelry pieces is that you cannot think only of your own taste; rather, you should opt for designs that aren’t likely to lose their shine as the years go by.