Are Diamonds A Good Investment?
Posted on April 05 2019
Widely considered to be an investment that is virtually recession proof, diamonds are one of the few investments that never lose value. Over the years, diamonds of high quality never lose its value. A continued and steady demand for diamonds do increase in price as each year passes. The continued, steady demand for this gemstone indicated that people will always be willing to pay any price for a gemstone this beautiful. This is true regardless of the world’s economic state. It is almost laughable to think of any other brilliant stone replacing this diamond as the engagement ring go-to.
You Can Wear It
Other than the fact that diamonds are a great investment since their value increases with the passing of every year, another advantage is that they can be displayed and worn. One of the advantages of owning a diamond is that having them set into a jewelry piece does not affect how valuable they are in any way. They can be polished, cleaned and worn over a lifetime repeatedly and still be worth more than the original price you paid for them. Expensive diamonds, just like all other investments, need to be insured against getting lost.
A Smart Investment
Due to the increase in the value of a diamond no matter what the economical circumstance happens to be, they are a truly smart investment. The banking system does not regulate diamonds so they are protected from a change in the market overall as well as the banking system. Around the world, they are traded and do not depend on one singular economy. In other words, if there is a crash in the market, there will still be a demand of diamonds unaffected in other nations around the world. Unlike property, diamonds are not taxed beyond the moment when you first bought it. After the time that you bought them, they do not require any extra maintenance. There are no special requirements or age limits for buying diamonds and since they last forever, they can be handed down to the next generation without limits.
Not the Size
The worth of a diamond is not necessary determined by its size. Smaller diamonds have a higher clarity level and has been cut by master crafters and are considered more valuable than discolored, valuable stones. Because of this, before you make a big diamond purchase, it is a good idea to seek knowledge expertise.
A Symbol of Status
For the famous and the rich, diamonds will always be a symbol of status. Individuals who are wealthy can’t seem to buy enough diamonds. The same folks who spend vast amounts of their funds on expensive jewelry including diamonds are the same folks who are affected least by the economy’s downturn. It is safe to invest in diamonds due to the inelasticity it has in the market.
In short, the answer is yes, diamonds do indeed make a good investment. They are tremendously lucrative and very reliable. The public has learned lessons of investment after the recent recession and no matter how unstable everything else is, diamonds mean stability.