Dollars, gold, diamonds - Where should I invest my money?

I can't tell the names of specific companies, but in my opinion if you want to strike it big, you should invest in diamond technologies. Due to their extremely unique properties, a lot of research is being done into the use of diamonds (especially nano diamonds aka diamond dust) in various technological applications. Recently there was an amazing breakthrough in cancer research that had to do with using diamond dust to administer chemotherapy drugs. And research is ongoing around the world on how best to take advantage of diamonds' unique physical properties. Investing in jewelry is all well and good, but the jewelry market is more or less stable. There isn't going to be a sudden spike in the purchase of diamond rings or diamond stud earrings one day. Diamond technology, on the other hand, could be set to soar. You won't ever make a fortune investing in gold or diamonds jewelry, but if you somehow invest in diamond applications, although the risk factor might be higher, you could very well be in for a pleasant surprise.

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If we put diamonds on the side for a while, then gold is indeed gaining force over the Dollar. I believe that the decrease of sells you heard about are of gold jewelry and not of gold as an asset in which many people invest lately. The Dollar seems weak, thus many people turn to gold, hoping it is a wiser investment. So far, well, it seems reasonable, since gold prices are indeed breaking records and expected to continue to rise. But you should still remember that gold prices are stated in Dollars, therefore if the Dollar becomes weaker, than gold will necessarily become worth more Dollars, even if gold's "actual" value remains the same.

Since gold is both an asset and both a precious metal used in jewelry, one affects the other. Some like to invest in pure gold, while some might invest in gold jewelry, though generally speaking the former would enjoy the rising prices of gold more than the latter, because people who possess gold as an investment will enjoy the fact that it has become such a strong "currency", while jewelry consumers wouldn't like the spend to much money on gold jewelry. Furthermore, gold jewelry is often purchased as a gift and while buying a gift one normally doesn't want to purchase a good "investment", but rather a both affordable and good high quality product.

The diamond market is much more stable. It seems that diamonds play a smaller role than gold in this recession, at least in terms of not becoming such a popular investment as gold has. Diamond sales have decreased significantly, since they are pricey and consumers became more thrifty in times like these. Now, when the recession is behind us to some extent, many jewelers and jewelry designers think of alternatives to gold, since customers' demand to gold jewelry isn't very high for the high gold prices. With diamonds, there's not such a need for a change, as diamond prices are more stable and once the recession will be completely behind us the demand for diamond jewelry will be very high again.

To clarify this point, I read an article about gold and diamond sales in India a few days ago. The article discussed the trends in sales of both diamonds and gold throughout this year and more specifically during the Diwali (Indian "Festival of Lights") holiday season. Before this holiday gold sales become very high, since gold items are used in many of the rituals and also as gifts. India recovered from the economic recession faster than most western countries, still the rising prices of gold have scared many consumers off. Diamonds are traditionally less important in the Diwali celebrations, though diamond jewelry can serve in gifts. In last Diwali season, diamond jewelry sales were exceptionally high, sometimes serving as an alternative to gold jewelry.

In any event, I would advise you to keep every gold item for yourself and when you come to buy jewelry gifts stick to cheaper metals. Concerning diamonds, I think that no news is good news...

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