People have the notion that investing in jewelry is a wise decision, but only if you invest in yellow gold – solid yellow gold of the greatest purity. Before, no one thinks that investing in jewelry studded with gemstones and diamonds is a better option. Fortunately, people’s financial habits and acumen have evolved and they have concluded that investing in diamonds particularly is a must when building a valuable jewelry investment portfolio.
Diamonds provide good returns and for the past recent years, the price has been increasing consistently. Of course, like any other investment you should be a wise investment to get the most out of your assets. Before investing in diamond jewelry, read below to fully be informed not only of the benefits but also of the risks.
Investing in diamonds provides a high ROI
Since the value of diamonds has been increasing since 2002 and experts predict this upward trend will still continue in the future, diamonds you have bought now will give you a high ROI or return of investment when you resell. Other luxury goods have been available for a wider market in recent years, making them less exclusive. This, however, does not involve diamonds.
Diamonds are rare
One of the main reasons why investors are turning to diamonds is that they could be extremely rare. Investors and collectors who are after rare pieces are willing to shell out a serious amount of money for rare diamonds found in only a few locations. Diamonds have also been traditionally seen as a symbol of wealth and elegance and have endured the test of time as a valued asset class.
Diamonds are inflation-proof
Real estate, gold, silver, and diamonds are usually appreciated because of inflation. But, compared to others, diamonds are more durable and mobile. Even if you are not really interested in investing in diamonds. They are still a wise purchase for putting money aside.
Diamonds are easy to store and keep
Since they are small, diamonds are incredibly easy to store and keep. Even if you have a small safe, it would not be a problem. Since all your diamonds could easily be stored and protected even in the tiniest of safes. You would not need to have a warehouse to store your diamonds. Like you would if say you invest in expensive artworks and statues. And if you suddenly decide to move overseas, it would be easy to bring your diamonds with you.
Risks in investing in diamonds
Despite the promise of high ROI, there are still significant risks involved. If you want to buy diamonds Melbourne has many stores that employ a certified diamond grader. Without the assistance of an expert in assessing the worth of the diamond, you might have a hard time selling them in the future. You might be paying more for a diamond that is of lesser worth. Diamonds could not be sold immediately as well like stocks or bonds and would be difficult to liquidate. Since they require specialist knowledge to appropriately assess their value.
As soon as you have decided to invest in diamonds. You should know everything about them by beginning with the basics. Learn the fundamentals to become a better and wise investor.
