It may be more economical to purchase a loose diamond. Buying a piece of jewelry with a diamond already set means that you are paying for all aspects of that jewelry, from the setting, to the gold, and even the cost of setting it.

One of the most traditional choices is to sell to a pawn shop, jeweler, or diamantaire (diamond dealer) at a brick-and-mortar store location. In order to make a profit as a retailer, they will pay you a portion of your diamonds' retail value, and then sell them for a higher price.

As with any potential investment, investing in loose diamonds has its own unique pros and cons. In short, yes, buying loose diamonds is a great investment as natural diamonds hold their value and appreciate as do most rare and highly sought-after commodities.