Diamond & Jewelry News, Advice and Prices for Consumers
Diamond & Jewelry News, Advice and Prices for Consumers
August 28, 2010
Diamonds have always been a very valuable item, diamond prices are in a clear up curve throughout the years (not including the recent economic recession), but somehow it seems that diamonds are not a common investment, at least not as common as gold. Is this true? Why in fact is gold a much more favorable investment? Would it be wise for me to invest in diamonds?
November 9, 2010
Purchased at the right price, diamonds most certainly retain their value; in fact they actually increase in value over time. Over the last 20 years Diamond prices have been steadily increasing. Though there is no absolute certainty it is unlikely that diamonds will ever loose their value.
Thinking of these stones as the main part of financial or retirement investment is not advisable but when considered as a timeless and beautiful gift that symbolizes love and commitment, diamonds are an excellent investment. But if someday you have to dispose of your diamonds they will almost always be appraised by those who are found of this precious stone. The resale value of a fine stone will always yield better money. Fine diamonds will almost always find a buyer if they are offered a little under the market price.
Of all the tangible assets of investment diamonds are most advantageous:
1. protection from inflation, bank bankruptcy, market collapse, currency reforms
2. anonymity (no registration required)
3. world-wide convertibility - diamonds are the only international accepted alternative currency which has the same value all over the world
4. tax free betterment
5. no maintenance costs
6. very prestigious
September 2, 2010
It is true that diamonds have never been considered a safe bet compared to gold. Diamond prices have been in a positive trend in recent decades, but still their prices are less predictable than the value of gold. Even in years of economic growth the increase of gold prices was more fast and steady than that of diamonds. I guess this has a lot to do with the control that diamond mining companies have over the diamond industry, keeping their cards close to their chests and leaving the rest of us clueless about their future moves and policies, which clearly would affect diamond prices significantly.
And nowadays this situation is ever more distinct. Gold prices have increased by about 25% in the last year, while prices of polished diamonds have dropped by 10-15%. While gold can be treated almost like an alternative currency, without depending on subjectivity or beauty standards, while diamonds, although they are made of a very valuable natural substance are still treated first and for all as a beautiful jewelry related item, and determining their value has a lot to do with fashion trends, local markets' demand and many personal taste relating elements.
Still, it would be incorrect to say that diamonds are seldom treated as an investment. Diamond investing funds operate in many countries, some have been even launched this year.
There is a long existing conflict whether to treat diamonds as a piece of art or rather to regard diamond pricing as a science which could be learned and predicted. Several diamond price indexes do their best to represent current diamond prices. Many companies offer private diamond owners various auction services, in which diamonds' prices are determined mostly by consumers' demand.
Which diamond are most suitable for investing? Some experts advise purchasing big fancy color diamonds for such a purpose, especially green and red diamonds, which are considered very rare, and will certainly become rarer in the future, unlike white diamonds and other fancy colors which could be potentially mined in many locations on earth. Vintage diamonds might also be a wise choice. The value of provenance could make such diamonds quite valuable, especially if you own a diamond of a former empress or princess:).
