Diamond Investment ROI Calculator
Calculate potential returns on diamond investments and compare to alternative asset classes over various time horizons.
Diamond ROI Calculator
Estimate the return on your diamond investment after accounting for purchase markup and appreciation.
Diamond vs Other Investments
Compare diamond returns to stocks, bonds, gold, and real estate.
Fancy Color Diamond ROI
Calculate returns on fancy colored diamond investments, which historically outperform white diamonds.
Formula
Future Value = Wholesale Value × (1 + Annual Appreciation)^Years
Wholesale Value = Purchase Price / (1 + Retail Markup)
Frequently Asked Questions
Are diamonds a good investment?
How much do diamonds appreciate per year?
What types of diamonds appreciate the most?
Diamond Investment Analysis
Diamond investment is a nuanced topic that requires understanding the difference between retail and wholesale markets. When you purchase a diamond at retail, you immediately lose the markup (25-150% depending on vendor). This means the underlying diamond must appreciate significantly just to break even on your investment. For a diamond purchased with a 50% markup, the wholesale value needs to increase by 50% just to return your original investment.
The diamonds most likely to appreciate are those at the top of the quality spectrum. Investment-grade white diamonds (3ct+, D-E color, IF-VVS1 clarity) are genuinely rare and consistently in demand from wealthy collectors worldwide. These stones have historically appreciated 4-6% annually at the wholesale level, which can translate to positive returns if purchased at or near wholesale prices.
Fancy colored diamonds represent the best investment opportunity in the diamond market. The closure of the Argyle mine in Australia in 2020 -- which produced 90% of the world's pink diamonds -- has accelerated appreciation for pink diamonds significantly. Vivid pink, blue, and red diamonds have shown 10-15% annual appreciation at auction, making them one of the few diamond categories that consistently outperform traditional investments.