Those who belong to the older generations believe that gold is the best investment anybody could make. It is always the solid yellow gold that took the highest seat when it comes to investments. Diamonds and other gemstones were content with only 18kt or 14kt gold for their settings. Over the years, the investment pattern changed. Precious jewelry can now be considered a great investment option. Diamonds offer great investment returns. Apart from that, diamonds are also seen to have a steady price appreciation as the years passed. However, same as other forms of investments, investing in diamonds has its own set of pros and cons. The following are some of the pros and cons of investing in diamonds:
Size: The major advantage that diamond has over gold as an investment is its size. Diamond does not take a lot of space when compared to gold bullions. Since a long time ago, diamond and gemstones have been used as a reliable means of money transfer. A diamond trinket even though it is minute can cost twice or thrice compared to gold jewelry of the same value or size.
Durability: Diamonds are naturally bestowed with durability. This gemstone is considered the hardest thing you can find on the planet. You need not worry about your diamond jewelry wearing off over time. This makes it possible for you to invest in them and enjoy wearing them at the same time. It is also possible to insure diamond jewelry; diamonds are also inflation proof, same as other physical commodities like silver, gold, and real estate.
Storability: Since it comes in a small size, a diamond is highly storable. This means that you can easily keep a diamond which costs hundreds of thousands in a small safe. Most people also consider diamond a safer investment than other stocks and digital investments.
Investments are not without risk. With diamonds, the risks include lack of transparency, lack of tradability, and benefits take a long time to reap. Gold has a price index to follow, but there is nothing for diamonds. The price of diamonds depend entirely on the market and the demand and supply. It is easier to buy diamonds than sell them. There’s a tendency to sell diamonds at a price that is lower than you brought it. It takes a long time for one to reap the benefits when investing in diamonds. Diamonds won’t make a good short-term investment.
If you are planning to buy diamonds online like at the https://www.missdiamondring.com/, it is essential to look into the following: the basics of diamonds, setting the budget, and the steps required when making a purchase. The basics include the four Cs of diamonds namely: carat, cut, clarity, and color grade. Set a budget for your investment and make sure you don’t go beyond it.