Dubai is deemed as one of the cheapest places to buy diamonds and rightly so. There's a reason that it is regarded as one of the world's top three diamond trading centers—the other two being India and Belgium.

Loose diamonds aren't necessarily cheaper than their mounted equivalent, however, they have the advantage of offering buyers a 'complete view' – no inclusions hidden by prongs or color concealment against a setting. Buying a loose diamond online will be considerably cheaper than buying from a store.

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.