Busted: 5 Myths about Investing in Diamonds
While keeping money in banks doesn't multiply it, investing in diamonds may offer a ray of hope
We all want to save money and preferably make it grow by leaps and bounds. The idea of money sitting at a bank account or the home locker does not help multiply it. Often, stock markets scare people away, as it’s a complicated way of investing, requiring a lot of knowledge and time to track stocks.
Precious stones and metals are the next best bet in making lucrative profits with investments. It is a safe market and guarantees liquidity in emergencies. Diamonds are a smart investment too, for those who like to invest in them for gains. The diamond industry has been a victim of many misunderstandings, complexities and history. In the 21st century, there are some myths surrounding diamond investment that often keep investors from taking advantage of a gainful opportunity.
Here are five of those myths:
1. Diamonds are not rare
Loved and adored by many, diamond is one of the most sought after gemstones for sentimental occasions such as engagements and weddings. The advertising industry has also pegged it as forever. Diamonds are the hardest substance on earth. Because of its complex combinations and form, each diamond that is mined or cut is unique. Although diamond mining has been paused for a few years, the ones in the market are all special.
2. The diamond investment market is not regulated
It is true that the diamond market is not regulated by an external financial authority, although there is a market price depending on the Diamond Report, which is followed globally by diamond merchants. You do not need to be a professional jeweler to understand the value of a diamond.
3. No high performance without high risk
Diamond investment is a non-speculative investment. It means that its profitability must be valued over a minimum of 10 years. Since the 1960s, the value has remained stable. Because of the growing economy globally, the value of a diamond remains advantageous. Therefore, professionals recommend investments in a diamond for the long term.
4. Only the white diamond is profitable
The white diamond is a common gemstone in jewelry. Coloured diamonds are considered fancy and having less value. On the contrary, a coloured diamond is popular in investment circles for its rarity. Since mining has become less over the years, both coloured and white diamonds have gained in value. The most valued diamond right now is the pink diamond. A diamond’s value keeps growing with demand over the years.
5. Other metals and gemstones are more lucrative
The safest way to invest your money is to diversify your investments. It is advisable that you invest in precious metals such as gold, but diamonds will add a higher return rate to your portfolio. Diamonds are a tangible form of investment. It means they have a value in physical form and they allow you instant liquidity.
Your investment portfolio will not only get a boost but will also give you more returns than you would, with a limited portfolio. It is becoming a popular investment option for many. It is vital to note that the size of the diamond does not determine its value. Diamonds are an investment that you can flaunt without having to hide them inside the locker. Diamonds look gorgeous on women and are the most sophisticated form of fashion. Diamonds are not only a girl’s best friend, but also a man’s most trusted form of investment. It creates a win-win for both. Look beautiful and watch your money grow as you enjoy the riches of the gemstone that is most desired — the diamond.
The writer is the owner of Dhanvi Diamonds
DISCLAIMER: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.