Investing is a way to ensure a stable future for ourselves and our children. However, with the fluctuations in the market and businesses crashing every day, investing can be a tricky business. So, an investment that you can see and touch may be a bit more appealing to you. In that case, precious metals and diamonds seem like a fantastic way to invest your money. This kind of investment is gaining popularity, so this text will discuss some important aspects of it.
No investment comes without risk, and the cons should be the first thing you consider. First of all, they require quite a big initial capital, since they’re extremely pricey. They grow in value over time, but at a very unsteady rate, which means that it’s hard to predict when and for how much you’ll be able to sell them. The price itself depends more on the market situation than on objective measures, although there are general guidelines that’ll help determine the diamond’s value.
Next, keep in mind that diamonds are quite small, which means that they are very easy to steal. There are many preventive measures you can take, but the fact remains: a well-trained thief who knows you have something worth stealing will usually have little trouble actually doing the deed. So as long as you’re investing in diamonds, consider getting a serious security system.
Furthermore, diamonds are not as easy to sell as they are to buy. You may be unable to find an investor who would be willing to buy your goods for a higher price than you, which makes it difficult to make a profit. In the moments of weakness, when you’re facing a financial crisis, you’ll be tempted to sell them at a lower price, which means that you’ll be losing money. The market has seen the rise of synthetic diamonds as well, and while they’re obviously not as good as the natural ones, it’s just a matter of time when the technique is refined enough to provide gems of nearly equal quality, which may be detrimental for the diamond value in some degree.
Of course, there are many advantages to investing in diamonds. First and the most obvious one: they will never go out of fashion. Because of the high demand and low supply, the prices in general have been rising for the last 60 years or so, so even if you can’t predict the speed of the price change, you can still (more or less) safely assume that the prices will continue to grow, if nothing dramatic happens in the world.
Still, say that something dramatic does happen. Chances are that the prices won’t rise, but the good thing is that they won’t fall either. Diamonds are pretty independent of the outside world, including economic and political crises, which makes them a fairly safe investment in that regard.
Because even a very small diamond is worth a lot, they are very easy to store and transport, which makes them more practical than gold, for example. They’re also easy to hide if necessary, and they are fairly easy to maintain, and if you take good care of them, they will last for a very long time.
3. Things to be aware of
Even though there are some downsides to investment in diamonds, in general it is considered a good investment. While you shouldn’t sell everything you own and go into the diamond market, you can safely invest in your fiancée’s ring or a new pair of earrings. If you do so, there are still things to keep in mind.
Firstly, do your homework and learn the four Cs – clarity, cut, carat, and color – as those are the things that give value to your diamond. Next, make sure you buy the right (certified) diamond and don’t get ripped off while doing so. There are professionals who can help you buy safely. Finally, don’t expect that your investment pays off quickly. You may need to wait for years before you can reap the benefits.
Investing wisely is the best thing you can do for your future. Diamonds are a good investment, and as long as you are careful about what you buy and how you buy it, they can bring you profit, or simply keep your money safe.