If this question is asked from someone from the last generation, you will notice how they frown upon it as gold was considered as the material with the highest purity and was said to be the best investment option. However, times have changed now and with this change in time, the perspective of individuals have also changed. Just like every other individual in society, if you also wish to invest in diamonds, Visit a Diamond Jewelry Store today.
Diamonds are said to make great investment sense as not only do they tend to have high intrinsic value but they’re always in demand and last forever. Let us have an in-depth look at some of the pros and cons of investing in diamonds.
The Pros of Investing in Diamonds
Over the years, a rapid increase has been observed in the use of diamonds as an investment tool. There are a number of factors that make diamonds a more worthy investment option in comparison to gold.
1. Durability
Durability is one of the great advantages offered by diamonds as a diamond is considered to be the hardest thing on the planet Earth which means that you won’t have to worry about diamond jewellery wearing off as long as good care is taken. Since you will be free of this concern, you can wear and enjoy your investment for as long as you want.
2. Size
The most obvious difference between gold and diamond jewellery is size. Diamonds tend to take less room in comparison to gold bullions. If the cost of two same-sized trinkets, one made out of gold and the other made out of diamonds, is considered, you will find out that the one made out of diamonds would cost double or triple. This proves that diamonds are indeed a great investment option.
3. Storability
Since diamonds have a small size, their storability becomes great. This means that you can keep a diamond that is worth hundreds or thousands in a small safe.
Just like other physical commodities such as gold and silver etc, diamonds are also said to be a great proof of inflation. However, in comparison to others, investing in diamond jewellery is more durable.
The Cons of Investing in Diamonds
Everything on this planet earth has benefits, similarly, everything has downsides as well. There are quite a few risks involved when it comes to investing in diamond jewellery. Some of them are mentioned down below.
- Lack of Tradability
Lack of traceability is one of the risks that is involved in the investment of diamonds. While purchasing diamond jewellery may seem to be an easy task, selling it may be a difficult job. Even though some companies may show interest in buying diamonds, the price they would be willing to pay would be lower than the initial price at which you bought them.
2. Lack of Price Transparency
Lack of price transparency is also one of the risks involved in the investment of diamonds. Various popular commodities such as gold have a popular price index that is easy to follow, no such thing exists for diamonds. Their price is dependent on their demand and supply in the market.