While there are many people who invest in colored diamonds through companies such as Paragon International Wealth Management , there are others who opt not to invest in them due to various reasons. Basically, the concept of investing in colored diamonds is relatively new. But the demand in colored diamonds coming from India and China and the fact that these diamonds are very rare has made many people want to invest in them since this has increased prices of colored diamonds and made them very valuable unlike any other asset. But why are some people not interested in investing in colored diamonds?

One common factor is the lack of transparency in prices of these gemstones. While many diamonds are traded in known auction houses making it easier for people to understand their prices, others are traded outside known auction houses. When such diamonds are sold, the agreed upon prices are never known. According to Paragon International Toronto, this factor makes many investors worry because their ability to accurately assess prices is very limited. What this means is that a typical investor would have to heavily rely on prices earned at known auction houses so that they can properly evaluate the costs of buying one diamond for the purposes of investing.

Secondly, some investors are finding it difficult to define prices of color diamonds due to the fact that each color is extremely unique. In contrast to white or colorless diamonds, which have specific quality measurements in 4Cs, appreciation of colored diamonds according to Paragon Wealth Management goes beyond the typical benchmark qualification method. Although the 4Cs are considered when determining the value of colored diamonds, the color character is considered to be worth more in value than the Carat Weight, Cut and Clarity of the diamond. Carat Weight can even be compensated with better colors of rare colored diamonds so that their value cannot be lost.