The term “wear your investment” is catchy but should invite caution when used as a selling pitch.
While diamonds and diamond jewelry have been appreciating in value, it is generally not a good investment option for the general public. There are a few reasons why I think that diamond jewelry should not be considered as an investment option–at least not one that can generate a profit in the near future.
Diamonds, even though they appreciate in value, have a hefty markup when they are sold at a brick and mortar (retail) store. This markup is usually large enough to eradicate any price appreciation in the short term.
Diamond jewelry pieces with smaller diamonds are especially not a good investment option. In general, the smaller the diamonds on a piece, the harder it will be for you to sell it, and the lower your selling price will be compared to the original buying price.
There are always exceptions to this general trend. For example, platinum, gold and metal alloy prices have gone up by %100 – %200 in the last year and a half. The prices for high quality diamonds above 5 carats have also gone up significantly.
The bottom line is: Choose the jewelry pieces you love wearing. Wear your jewelry and enjoy it! Invest your money with a brokerage firm, not your jeweler. Keep in mind that your jeweler is not your investment advisor!