Investments are necessary to build a corpus. People save money for their egg-nest. There are several avenues to save money. Some are conservative sources while others offer great returns.
Those in the higher tax bracket have access to several other options.
Diamonds are a luxury item to own. They are regarded as valuable, and some diamonds are sold for eye-blinding prices. They are also inherited as an heirloom. Royal families have several of them and very often celebrities own diamonds that go off on sale in auctions. Sometimes, an engagement breaks off, and the diamond is auctioned!
In the global economy, where the market may go up or down, one has to stay invested to make the best use of the rise afterward. Along with other options, some choose diamonds to invest in.
Commodities as an investment vehicle aren’t often as popular as stocks and shares. People buy gold and diamonds as hedging tools.
Why invest in diamonds?
Though Debeers through their marketing campaign successfully managed to bring diamonds in the popular imagination, it took time for the stone to make it to the list of investment portfolios of consumers.
But an investment in diamond may pay off.
- Diamonds are physical and don’t use much storage. One can store as much as a million dollar in a tiny bit of space. A small safe is enough. We have read about diamonds being transferred through geese and such other vehicles in detective stories. That is how easily transportable it is.
- Diamonds are durable – They are the toughest substance on earth. Nobody can break it, and so you can be worry free as long as you store it in prescribed conditions. You will insure it, and so you will take good care of it so that you don’t lose it.
- Inflation-proof – Most physical commodities move with the market conditions. Only a few are immune to it. Diamonds are not only durable but also remain inflation-proof. Even if you don’t want to wear a diamond, buy one as an investment option.
- Unlike other investments, you can wear your diamonds. Enjoy it while you own it. Diamonds don’t wear off. They don’t reduce with time. Their value increases with time. Prices of diamond mostly increase each year. So, even if you sell it, later on, you get to wear it while it is with you.
- There is a psychological aspect to owning diamonds. Unlike real estate and stocks, you can touch a diamond. It makes you feel secure.
Diamonds allow diversification in your portfolio. Buy only certified diamonds. When you decide to sell the diamond, the buyer may have a different motive than you. Even if he buys it as an investment avenue, he will consider it in his own setting. So, the setting you chose for the stone will be immaterial. You will get paid for the diamond only. Still, have it mounted. Because it allows you to wear it.
All the information above has been kindly provided by a Master Jeweler certified by De Beers itself. If you want to know more about Diamond Investment and how to invest in Diamond click here