Diamond jewellery is among the most reliable investments you could make, second only to gold. More and more investors choose this precious stone to create portable and manageable wealth that is easily traded during times of crisis. Certainly, jewellery is beautiful and easily appreciated by recipients and owners, but it has also proven quite profitable throughout the years.
To help you navigate the complex diamond market, we have created this list of the advantages of these precious stones as an investment. With no further ado, here they are:
Its value is increasing
Trends in the market have shown that the value of diamonds is only increasing. It enjoys a particular spotlight as a luxury item that can be worn and used to profit. While the same principle can be applied to cars, real estate, art pieces, and so on, few are as versatile as jewellery. Whether you decide to buy loose diamonds, wearable jewellery, or a mix of both doesn’t matter.
For the greatest profit, many investment bankers, business analysts, and other experts in the field recommend purchasing coloured diamonds. While diamonds and diamond jewellery are all increasing in value, coloured stones are proving the most reliable. Even just a small investment can prove highly profitable in the near future.
The market remains stable during economic crises
While gold remains a powerhouse investment, diamond is following closely behind. As supply for diamonds gets lower and lower because of current economic circumstances, the prices are only expected to go higher. The beauty of jewellery is that its prices tend to remain stable, or even increase in periods of global financial turmoil.
The recession in 2008 proved this. Real estate, bonds, and other related markets crashed while the diamond industry remained strong. Even with crashes in the stock market, the diamond has remained strong.
They have high liquidity
The beauty of diamond jewellery is that it is far more liquid than other investments. Real estate properties, for example, can take a long time to sell. A trip to a dealer or a pawnshop, on the other hand, can easily convert your jewellery into cash.
A surprising fact is that commercial-grade diamonds are easier to sell than rare diamonds. Choosing commercially graded diamonds could be better if you’re only interested in the financial value of diamonds.
They are incredibly durable
Properties, luxury vehicles, and art are all subject to wear and tear. They will likely need some form of maintenance or special storage.
Diamonds, on the other hand, are easily stored. The best part is they will never fade or break apart. All you’ll need to concern yourself with is the storage. You could consider a storage locker, safe, or safety deposit box.
When it comes to changing, fluctuating, and unstable markets, it is crucial to find ways to make more profitable investments. In times of economic crisis, your best option is diamond jewellery. You could keep a store of commercially graded diamonds in a safe, and then sell them at a later time for huge profit margins.
For more resources on the diamond jewellery market, check out our selection at the London Gold Centre. We only sell the best quality jewellery for collectors and investors.