Bonded Diamonds have several advantages, but a higher price tag...

Before you start shopping for diamonds, consider buying bonded diamonds from a bonded jeweler. Doing so will safeguard both the diamond and your money and ensure that you are buying a quality diamond.

Bonded jewelers are difficult to find. In fact, only about 5% of all jewelers are bonded.

Buying a bonded diamond will cost more than buying a non-bonded diamond, but when you look at what you get with the bonded option, you will see that it is well worth the extra expense.

Bonded diamonds give you the following advantages:

• Buyback policy: bonded diamonds have a ‘buyback policy’ for the life of the diamond. No matter how long you have had the diamond, you can take it back to the bonded jeweler and re-sell it for a 100% refund.
• Breakage policy: bonded diamonds also have a one-time breakage policy. If the stone breaks or chips, the bonded jeweler will replace it with a new one.
• Investment value: bonded diamonds increase in value, with a fixed appreciation rate that is designed to keep up with inflation.

  This means that a diamond that is worth a certain amount of money today will be worth more in the future, as the price of diamonds continues to rise, usually at the rate of 5% annually. This generally does not apply to buybacks, however. It typically applies to trade-ins.

• Investment protection: by purchasing a bonded diamond, you are protected against the possibility of a market crash. If a market crash occurs, the value of diamonds will drop.

  However, the bonded jeweler guarantees to refund you the difference between what the diamond is now worth and what you paid for it before the market crash.

Useful tips

• If a bonded jeweler does not offer a 100% buyback guarantee for the life of the diamond, then you should take a closer look at the diamond to see what is wrong with it.
• No jeweler would ever offer a buyback policy on any stone that was not 100% natural, so just the offer of such a policy should give you peace of mind concerning the quality of the diamond. Bonded diamonds are always natural and untreated.
• It may be difficult to find a bonded jeweler in your area, but if you can, this is who you want to deal with if you are looking at your diamond as an investment.
• Specifically tell the jeweler that you are only interested in bonded diamonds. You can find a bonded jeweler in your area by using various online resources, or by calling the local jewelry stores. You could also ask you local gemological association.