Investing in diamonds is a practice that stretches back centuries, with queens and kings from days gone hording diamonds and other precious gems. Diamonds have long been seen as the ultimate status symbol, a display of luxury and power that comes in the diamonds being rare and precious. It is no surprise then that the biggest of these stones that are brilliant wind up being passed down through generations, remaining at the grasp of households, some of who have blood. Unlike bonds and stocks, which could be investments, diamonds are an investment. These stones become more precious with each passing year. While we are not suggesting that you should have nothing but diamonds as your investment, they should be a part of a larger investment portfolio. A balance is exactly what you should be looking for, but we have got some reasons why diamonds are a basic part of your investment plan.
- Extremely Resilient against all that Mother Nature may provide
Besides depreciating in value, there are a number of commodities that could actually decay in substance with time, either through modifications to the environment or pollutants. Diamonds really are a resilient and sturdy rock that will stay untouched by whatever Mother Nature throws. They are the stone found on earth they do not lose their shine or luster and will continue to sparkle and be brilliant. They are an asset that will end up being an investment.
- They are a Truly universal money
Most individuals are unaware that diamonds are widely accepted as form of payment in a trade transaction. It is easy for travelers to liquidate their diamonds in any state, while the same cannot be said of share certificates, which cannot be turned into money in a market. Free trade means that every nation in the world can charge any price they see fit for any given commodity. This is not true for diamonds, as the Rappaport Diamond Price Report provides the average cost for each of the sorts of diamonds on the market, the report has created a situation where the cost of diamonds has become standardized around the globe. You may expect to receive fair market value form a diamond purchaser.
Of the diamonds which survive, only about 5 percent actually weigh more than just one carat. Adding to the factor is the fact that supplies are running out, with De Beers indicating that diamonds may be mined out in 40 years if no new mines are found in that time. It is when used at a wedding band while their power and strength functions as the symbol of love their rarity that makes such a present. We all have seen stock markets collapse and collapse, resulting in a recession that could wipe out riches. Considering that the value of diamonds is not attached to the operation of the stock exchange, their value remains intact. Diamonds are used in these times when hyperinflation causes commodities’ purchase price to spike as a hedge against inflation.