Diamonds as Investment

Investing is the most intelligent way to make your money work for you.  Smart investing is a skill that many try, yet few succeed. It is estimated that nearly 90% of stock market investors end up losing money, and for many reasons, mainly lack of effective education and research.

Over the last 10 or 15 years, the global economy has had many ups and downs, but more downs for certain.  As with all investing, generally the more knowledge of the commodity you are equipped with, the more likely you will succeed, and diamonds are no exception. Many investors are attracted to diamonds for a few simple reasons. Diamonds as a physical commodity have some unique advantages unlike any other investment – mainly, portability.  This alone is very attractive and appealing to many investors, and to my knowledge, there is no other material with as great a value that occupies a smaller space than a diamond.  Incredible, and true someone could easily wear a diamond pendant necklace underneath a t-shirt valued in excess of $50 million dollars, which is virtually invisible to anyone. There is no other collectible, precious metal, artwork, antique, etc that could make a similar claim, and for this reason, diamonds have significant appeal amongst the wealthy (the same amount in cash would require a 10 foot safe).  The use of diamonds as an investment and financial hedge tool has grown rapidly over the last few years as they take up little space, require no special care, do not deteriorate, rust, break, etc and if bought correctly, diamonds are essentially inflation proof.

One other advantage in diamonds is that the owner can have the use of the diamond anytime by wearing it as much or little as they wish, and since a diamond is the hardest natural material on earth, there is no wear and tear and after a simple cleaning, the diamond is the same as the day the owner acquired it (meaning there is really never a ‘second hand' diamond).  

The psychology of physical commodities like gold, silver or diamonds also gives the owner the feeling of physical control, unlike stocks or other commodities which are only viewable on a computer screen or paper.  Now, before running to the jewelry store and loading up on diamonds, allow me to impart some elementary advice:

a)  Learn a little first, read up or take a basic diamond course

b)  Strategize an amount and budget goal – start with a small percentage of a portfolio until you become more familiar with diamonds

c)  Buy the best you can afford, be it rare or unique color or shape because these will always remain in demand with consistent higher value

d)  Make a friend that you can trust and rely upon expertise in the field

And remember that all investment involves some speculation and all investments have pros and cons. Many a fortune have been made in diamonds and some lost as well. Learn, purchase wisely, and find the best investment diamond based on your information from your trusted sources so your risks will be minimized, and your gains maximized.