Did you know that, in outer space, there are dwarf stars with diamond cores? The largest diamond in the universe is estimated to weigh over 2,000 trillion tons. Pretty big, considering that The Wedding Report says that the average diamond engagement ring has a 1.18 carat weight.

Diamonds have been in high demand for hundreds of years, and are likely to continue their popularity well into the future. If you are planning to buy or sell diamonds, here are three things you should know.

1. The Four C’s

Whether you are planning on buying one diamond or 100, you should know about the Four C’s. The four C’s are the standard measures of gemstone worth, and they stand for carat, cut, color, and clarity. Although diamonds come in every color, for grading purposes they are rated from colorless to light yellow. Colorless diamonds are the most valuable, as they disperse light the best. Clarity refers to the presence of flaws, or inclusions, in the stone. A flawless diamond is, of course, the most valuable. Carat refers to weight, and larger diamonds are more rare, and therefore more valuable. Cut refers to proportion, not shape. If a diamond is cut too deep or too shallow, it will appear less brilliant.

2. Diamonds, an Investor’s Best Friend?

Like gold, diamonds have the advantage of being a hedge against inflation. They are also not tied in value to fluctuating bond markets. Does this make them a good opportunity for investment? Money MSN says yes, especially because demand for diamonds in Asian markets is not being met by the growth in supply, indicating that a diamond bought now could be worth more in only a few years. However, CNBC cautions gold and diamond buyers that valuing diamonds is difficult, and diamond investment is best left to the professionals.

3. Wholesale Diamonds

Many people have been discussing the benefits of buying wholesale diamonds, and then reselling them to different markets at an upscaled price. This logic is right in that diamonds by themselves will be easier to sell than individual diamonds set in rings. No matter what the case, make sure you get diamonds valued independently as a clause of purchase. There are several organizations and companies that can give you reports or certificates on the grade of your diamond, including GIA, AGS, and IGI.

Do you have a diamond for sale, or are you looking for one to buy? Let us know your thoughts in the comments