Diamonds have always been a popular stone to invest in and people have been doing that for years now. Whether it is for a marriage proposal, to gift the bride during her special day, to give as a gift later on during the marriage or for just plain investment reasons. Diamonds have always topped the charts when it has come to reasons like this. However, over the last few years there has been a lot of discussion going around about how diamonds are not worth the money and should not be purchased and things like that. It is true that diamonds might not be for everyone, but to claim that it not something worth investing in, is not correct.
This article aims at educating the reader a little bit on the value of diamonds, about how they are worth your money and why you should not be paying heed to everything else going around against it.
- Diamonds have become much more popular than gold – given the rise of the Asian middle class, people are looking at investing in diamond rather than gold which has helped surpassed its popularity in front of gold. Whenever they want to invest in an item of jewellery, they look for the latest designs of diamond rings rather than looking for something in gold.
- Fancy diamonds make for a very unique investment opportunity – colourful fancy diamond is growing in popularity as people are looking beyond just purchasing the plain diamond like everyone else. This is particularly true in the case of the mega rich as these fancy diamonds are extremely rare, there are very few of them which means the supply is less and they have an excellent return on investment value as their value only continues to increase over time. Apart from this, they also make a great addition for diversifying one’s portfolio of tangible assets.
- Diamonds will not reduce in value over time and are great tangible assets – diamond rings with price tags only appreciate over time and not reduce. Whatever investment you are making today in a piece of diamond, be sure of the fact that it will appreciate in value over the years and will give you much more in return than what you had originally invested in it.
- The price of diamonds has rebounded since the recession – the reason why the prices of diamonds were slow to rebound is because they were also slow to be affected during the recession time. However, their prices have now been fully recovered and they have continued to hold their value and worth in the market.
- The demand for diamonds is higher than the supply – the growing middle class around the world and specially in Indian and other neighbouring Asian countries, particularly China, have helped reenergize the diamond market. The demand for diamond, especially as an engagement ring has been growing exponentially which is surpassing its mining capabilities and eventually the supply of it in the market. Apart from just India and the Asian countries, the demand for diamonds has also been on a steady rise in other parts of the world specially Europe and the United States of America. As a result, diamonds are becoming rare because their demand is outgrowing their supply in the market.
Apart from the reasons listed above, it must also be understood that diamonds have a lot of sentimental reasons attached to them which is why people have kept on buying them. Whatever said and done, diamonds are here to stay and have an exciting and profitable future ahead of them!