Over the last few years, the use of diamond jewellery as an investment tool has seen a rapid increase. Several factors make it a good investment option as compared to gold.
Size
The first and the most obvious advantage it has over gold is its size. Unlike gold bullions, diamonds don’t take a lot of room. These precious gemstones were used as a great means of money transfer since a long time ago. A diamond trinket, no matter how small it is, costs double or triple compared to gold jewellery of the same size. This means diamond ornaments, whether it is diamond bangles or necklaces, make good investment options.
Storability
With small size comes great storability. So much that you can keep a diamond worth hundreds and thousands of rupees in even a small safe. Also, diamond jewellery is an investment one can see, hold, and wear. As a result, many people feel it’s a safer bet than stocks and other digital investments.
Durability
The durability of diamonds is another advantage they have been naturally bestowed upon. It is the hardest thing on planet Earth. You can be sure that nothing will happen to it. You don’t have to worry about diamond jewellery wearing off as long as you take good care of it. This means you can wear your investment and enjoy it as long as you want.
And if you are worried about losing it, you can insure it too. Diamonds are also inflation proof, just like other physical commodities, such as gold, silver, and real estate. However, unlike other physical commodities, diamond jewellery is a more movable and durable investment. Other than the physical aspects and psychology behind diamond jewellery as an investment, they also have financial benefits.
What Are the Risks and Cons of Investing in Diamond Jewellery?
Lack of price transparency
The first is the lack of price transparency. While commodities such as gold have a popular price index that you can follow, none of that exists for diamonds.
Lack of tradability
The second risk of buying diamonds as an investment is the lack of tradability. Buying diamond jewellery is a lot easier than selling them.
Long-term benefits
Diamond ornaments are not great tools if you are looking for quick returns or as a short-term investment. If you are ready to wait for the gains, you can make them a part of your long-term investment portfolio.
Culled From:https://www.bluestone.com
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