Investing in Diamonds
When it comes to selecting a piece of jewelry, our eyes can’t help but be captured by the sparkle and shine of a diamond. Diamonds are a favorite choice in jewelry because of the beautiful qualities they possess. Diamonds can be more than adornment options; however, they can be a great investment choice as well.
Diamonds as an investment often yield high returns, and are a stable choice in your portfolio because their worth remains solid even after adjustments for inflation. If your portfolio needs a hedge against inflation, diamonds are and have been a reliable choice for years. Even when other investment types may fluctuate wildly, diamonds hold a steady value.
The following are diamonds’ positive attributes:
A portable and liquid investment: Diamonds are traded with an accompanying certificate which makes the stones easy and portable investments. They are also widely-recognized s a valuable commodity, and therefore can convert easily in international markets.
Stability in price: Unlike other elements of economics, diamonds do not tend to fluctuate widely even in times of inflation. Investments in the market may be affected but diamonds hold steady.
Everlasting and non-expiring: Diamonds require very little maintenance or upkeep and do not “expire” in value.
Environmentally resilient: No matter the current environmental conditions they’re in, diamonds are not affected by pollutants or changes in the atmosphere. Diamond values appreciate rather than degrade despite the conditions.
Consistent worldwide pricing: Commodity prices may vary in different international markets, however, diamonds do not suffer from international price fluctuation. Investors will find diamond prices are standard throughout the world, which makes them attractive as investments.
A Universal value: Across the world a diamond’s value cannot be refuted. A diamond can easily be sold in nearly any country, and are not limited to being for sale in one location. This is unlike other investment options which may cause an investor to encounter transfer difficulties.
Scarcity: Due to limited production, diamonds can be scarce, but have an ever-increasing demand. Diamonds of one or more carats make up only 5% of diamonds suitable for jewelry.
Able to withstand the market: A portfolio rich in diamond investments is more stable than a portfolio of traditional investments. Therefore diamonds’ consistent value is an impressive hedge in a tumultuous market.
The aforementioned benefits are not infallible, and may be subject to limitations. An efficient market is a term used for other investments, but the term does not apply to diamonds. The main problem diamond trading faces is an absence of a central trading market and a lack of a universal storage space. Additionally, diamonds do not have homogenous qualities, and vary in appearance. Some investment experts believe this varying nature can make diamonds an ineffective investment. However, a “perfect” market does not exist among rational investors; every investment can be subject to a risk.
The opportunities provided by diamond investments offer an abundance of advantages. Do not be afraid to invest wisely in diamonds, and you soon will find that diamonds are a bright spot in your portfolio.
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