What’s Better to Invest In? Diamonds or Gold?

Diamonds
[Image Courtesy: Shutterstock, Coster Diamonds]

Are you thinking about making an investment in something other than the typical options of property or stocks? If so, you may be considering buying gold or diamonds.

You also might be wondering which is a better investment. After all, you want to spend your money on something that will become even more valuable in the future.

It’s worth noting that you can’t exactly compare diamonds and gold. This is because each diamond is unique. Many factors contribute to a diamond’s value. Gold, on the other hand, is a traded commodity. Its value is determined by outside factors, such as investor attitudes and supply and demand.

That said, there are a few reasons you may be better off investing in diamonds instead of gold right now. They include the following:

 

Consistent Appreciation

Again, many outside factors you can’t control impact the price of gold. That means you can’t be entirely confident any gold you buy will appreciate in value over time.

If you’re looking for an investment you can be more confident in, diamonds are a safer bet. Their value is tied to their quality. As long as you keep a diamond in good condition, you can expect its value to increase. This is especially helpful if you think you might want to sell a diamond in the future.

That’s not speculation. Historical trends indicate diamond value appreciates consistently. This makes a diamond a more predictable investment than gold.

Additionally, because the value of diamonds isn’t tied to stock market patterns, they make for a good inflation hedge. This is an investment that’s used to guard against the consequences of inflation. If a currency’s purchasing power decreases, an inflation hedge protects wealth.

 

Portability

When making investments, some people are looking for ways to condense their wealth into portable assets. You may be one of them. If so, invest in diamonds. They are simply more portable than gold, allowing you to bring your wealth with you easily. This may be necessary depending on your lifestyle.

 

Rising Demand

The value of consumer demand for diamonds reached a high of $82 billion in 2017 according to De Beers. This is likely due to the emergence of economically strong countries such as China, which has resulted in a greater demand for diamonds and gems manufactured and polished in nearby countries like Thailand. There’s little reason to believe the trend won’t continue. Thus, if you invest in diamonds, you can be fairly confident you’ll find a buyer in the future.

Remember, of course, you can’t exactly compare diamonds and gold. The nature of the investment is different for each. With a diamond, you’re investing in a rare item that’s valued specifically for its rarity and inherent qualities. With gold, you’re investing in a commodity. That’s why it’s important to conduct thorough research before investing in either.

This is particularly important when buying diamonds. Since many factors impact their price, you need to make sure you thoroughly understand a diamond’s value before making a purchase. Coordinate with experts to get a proper evaluation and ensure you’re making a good investment.

Once you know a diamond already is valuable, you could benefit from purchasing it. Diamonds tend to increase in value, and demand for them is higher than ever. These are all reasons experts are beginning to see diamonds as smarter investments than gold.

 

[Views expressed herein are personal views of the author of this article. BDI or any of its partners or affiliates neither does not necessarily subscribe or promote the views or info contained in this post nor are liable in any manner for any damages arising out of actions taken based on this post. Please consult your financial expert before taking any action and read our Disclaimer Policy carefully]

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