June 17, 2021
Are Diamonds worth buying as an Investment?
People often invest in jewelry made of gold, platinum, diamonds, and other gemstones. Even if an item may not have resale value, people often invest by buying jewelry like these. In this article, we will be talking about if diamonds should be invested in. If you’re someone who likes to invest in diamonds, you may have a diamond jewelry set or a diamond bangle bracelet in your collection.
If you’re looking to buy a diamond mangalsutra or a diamond jewelry set as a whole, we recommend Maaya Fine Jewels for excellent jewelry.
Advantages of Buying Diamond Jewelry
Let’s take a look at what makes diamonds a good investment option over something like gold or anything else.
- The first advantage that is had, is the size of diamonds. Diamonds do not take up a lot of room when compared to gold bullions and have been used as a means of money transfer for many years. A diamond, when compared to gold jewelry of the same value, would be a lot smaller.
- Adding to the previous advantage is storability. You can keep diamonds worth millions in a small safe. Another aspect is that diamonds are an investment that you can see, hold, and even mount and wear. This makes people feel safer as compared to investing in stocks and other investments.
- Diamonds are also one of the hardest substances in the world, making them very durable. As long as you take care of your items, you don’t have to worry about them. They can even be inheritance jewels and can never be ‘secondhand.’
- You can also easily ensure your diamonds if you’re worried about them being lost. Another advantage is that they are inflationproof, just like the other physical commodities that include real estate, silver, and gold. Diamonds are also easily movable and have many beneficial benefits.
Risks of Investing in Diamond Jewelry
While there are benefits to investing in diamond jewelry, there are also risks that you need to keep in mind.
- The first risk is the lack of price transparency when it comes to diamonds as compared to gold. They do not have a popular price index that you can follow, and the price depends on the market and the rates of demand and supply.
- The second risk is the fact that the resale value is very minimum. It is a lot easier to buy diamonds than to sell them. And the price you will get for these diamonds after selling them will be less than what you paid to buy them.
- Diamonds are not great for shorttime investments but are great for long-term benefits.
Diamonds are worth buying as an investment, but there are quite a few things that you would need to keep in mind before going for it. And as mentioned, we recommend Maaya Fine Jewels if you want to buy a diamond mangalsutra, a diamond bangle bracelet, or any other jewelry as they have a fine collection.