The use of diamond jewelry as an investment tool has grown rapidly over the past few years. There are several factors that make it a good investment option compared to gold.
Its first and most obvious advantage over gold is its size. Unlike gold bars, diamonds do not take up much space. These precious gems have been used since ancient times as an important means of remittances. Diamond jewelry, no matter how small, costs two or three times as much as gold jewelry of the same size. This means diamond jewelry, whether it’s a diamond bracelet or necklace, is a good investment option.
The small size brings excellent storage capabilities. Even in a small safe, you can store diamonds worth hundreds of thousands of rupees in it. Furthermore, diamond jewelry is an investment that can be seen, held and worn. Therefore, many consider it a safer option than stocks and other digital investments.
Durability
Diamonds’ durability is another advantage they are naturally endowed with. It’s the hardest thing on earth. You can be sure that nothing will happen to it. As long as you take good care of it, you don’t have to worry about your diamond jewelry wearing out. This means you can wear your investment and enjoy it for as long as you want.
You can also insure it if you’re worried about losing it. Like other physical commodities such as gold, silver and real estate, diamonds are inflation-proof. However, unlike other physical commodities, diamond jewelry is a more liquid and durable investment. In addition to the physical and psychological aspects behind diamond jewelry as an investment, they also have financial benefits.
What are the risks and disadvantages of investing in diamond jewelry?
Lack of price transparency
The first is the lack of price transparency. While commodities like gold have a popular price index that you can follow, there is no such price index for diamonds.
lack of tradability
The second risk of purchasing diamonds as an investment is the lack of tradability. Buying diamond jewelry is much easier than selling diamond jewelry.
long term benefits
Diamond jewelry is not a great tool if you are looking for a quick return or as a short-term investment. If you’re ready to wait for the gains, you can include it in your long-term investment portfolio.
