Is a Diamond a Good Investment?
What is an Investment?
An investment is an item that is bought by a person with the goal of earning back their money and then some. Investments may prove more profitable if they appreciate in value and or vice versa. Another important point about an investment is that the goods which are bought aren’t used in the same way as a valuable item which is used as soon as it is bought- like an expensive car or house. Investments are used in the future to create wealth. An investment diamond is therefore not worn like a diamond in an engagement ring but is rather bought and kept in a secure place, in the hope that in the future, the price of diamonds will increase and can be sold for more than it was bought for.
Diamonds- A Physical Investment
Likened to gold, silver or platinum, diamonds are a valuable commodity whose values fluctuate according to global markets. Since being widely available to the general public at the beginning of the 20th century, the demand and price of diamonds have skyrocketed due to their sparkly and rare appeal. The demand for diamonds as an investment, however, rather than a beautiful piece of jewelry, is due to the fact that the global economy goes through many ups and downs and this is where people look for physical commodities (like diamonds) to invest in. Something like a diamond, which is a physical object with rare properties is therefore different from a business or stock investment as these may rapidly decrease in value and become worthless in an economic recession.
The Benefits of Investing in Diamonds
As mentioned above, because diamonds are physically rare objects, their prices aren’t affected too drastically during an economic recession as their inherent value as a physical object doesn’t change in itself. Diamonds are actually projected to become even more valuable as time goes on as most diamond mines have been discovered and their supply will inevitably run out, making them even rarer.
Another benefit of investing in diamonds is that the industry is highly regulated, and standards of precious stones are held to very high standards. Buying an internationally certified diamond from the GIA (Gemological Institute of America) for example, means that the stone won’t run the risk of being accused of being a fake or being of low value.
Diamonds that have been certified for their clarity, cut, colour and carat by the European Gemological Laboratory (EGL) or International Gemological Institute (IGL) are also good options to guarantee internationally recognized value.
A diamond is an investment you can also enjoy while it is in your possession. If you want to, you can set your diamond in a piece of jewelry and admire it that way, or simply keep it loose. After all, you can’t admire the beauty of a Facebook stock! Speak to a Jenna Clifford consultant today and discuss your options for diamond investment!