Diamonds are forever and this stands as a testimony of why investments in diamonds are for the wise. Only 30% of the world’s mined diamonds are used for jewellery purposes and so capturing a one for you seems a smart choice. There is no other investment choice that follows the laws of economics as diamonds do. With a steep increase in price with decrease in supply, investors gain huge benefits with the ever increasing demand for raw and polished diamonds, while the supply has always been limited.
Although all diamonds have experienced a significant increase in their demand but some coloured diamonds such as pinks and greens have experienced a double increase in their price.
Diamond is a pioneer item of good that increases in value with age. Can you recall a piece of clothing or accessory that increases in value even after consistent and frequent use? While you use diamonds to flaunt and live a pompous life, diamonds will come to your rescue when these recession times occur and you can use something that gives you peace of mind financially.
There are plenty of other reasons why diamonds are such a great investment. Let us consider a few other types of investments and compare that to the return that can be achieved in diamonds.
The historic and safest choice seems to keep assets and cash in banks and let them take care of it. But seeing the recent events, can one really trust these large financially distressed institutions. For a few per cent rate of interest, the stakes can be high if a Lehmann brother story repeats itself.
The ever fluctuating shares market seems daunting too for people with limited knowledge of markets and hence becomes a difficult choice for investments. Bonds may act as good investments but again not for you, maybe for great grandchildren of yours. Real estate has always been great area of investments but that would be relevant if this article was dated post 2007. The mortgage crises stemming for the U.S has raised questions to investing in real estate altogether.
Seeing so many choice fail, diamonds as investment emerge as a clear winner. With an added advantage of diamonds being associated with emotional and family events, it would never hurt to invest in a piece of rock that keeps your partner happy. The non-crowded market for diamond investors also present a great opportunity to take advantage and utilize on arbitrage that may exist.
Not all painting is Mona Lisa’s but all diamonds do present great and safe opportunity to increase wealth and enhance financial security.
Diamonds provide an opportunity to invest and reap benefits like no other. In this world of ever increasing uncertainity, diamonds as an investment stand as a great chance to achieve your competitive and neighbourhood advantage.