Pros and cons of buying diamond jewelry
For a long time, people have been considering yellow or solid gold of the highest purity as their best investment option. Buying stone studded pieces of jewelry like diamond rings or even gemstone earrings made in 18k or 14k lower karat gold was not the option. It is for this reason wise investors stayed away from investing in diamond jewelry. They only had eyes for gold.
Today you will notice a wide variety of investment patterns circling the market. This is also attracting a lot of people to rethink their investment options. Some think of investing in funds and others in stocks. Some may go for deposits whereas, others may think of rental properties.
Also Read:- Top Reasons Why People Buy Diamond Jewelry
If you are interested in making jewelry into one of your investment options, then you should start thinking about diamonds. According to marketing gurus, diamonds and diamond jewelry make great investments offering incredible returns.
The first thing that people notice is the steady price appreciation graph over the years. Still, like any other investment channel even they have their pros and cons. If you are an investor or are looking for new and safe means to invest your hard-earned money into something worthwhile then you can go for diamond jewelry as an option.
Here is all the information that you need to know before you start investing in diamonds.
Pros of investing in diamonds
You may have a craze for jewelry. Why not turn it to create an investment portfolio? Let’s start by discussing its advantages. Several factors make it a good investment option. Some of them are as follows
Size
We, humans, are visual creatures. We like what we see and we go on to buy it. The first advantage of investing in diamonds is their size. It has a larger size than gold. Diamonds don’t take up too much room, unlike gold. When people came to know about its existence, since then it has been used as a means of money transfer.
A small diamond stone will cost you double or triple the value of gold jewelry of the same size. Whether it is diamond necklaces or diamond rings they will all make a good diamond investment portfolio.
Storability
Small in size but a great punch. But in the case of diamonds, it gives great storability options. It is so effective that you can use a small safe to keep your diamonds worth lakhs of rupees. Diamonds make one investment option, other than gold, that can be seen, worn, or held. For many people, it is a much safer bet than other digital investment plans such as stocks and funds.
Durability
Being one of the hardest minerals on the face of this planet, diamond is the most durable compound to be found here. This is one advantage bestowed on it naturally. No matter how much time passes, no harm will come to it. It can pass on from generation to generation without the stone wearing off. You can wear it and keep your investment nearby if you take good care of it.
Insurance
If you are worried in case you lose your precious diamonds, you have the option of insuring them. They are inflation-proof just like some other investment options such as real estate, silver, or gold. So, you can insure it to safeguard it for future purposes.
It’s not just the physical and psychological aspects of diamond jewelry, they have many financial benefits.
Risks of investing in diamonds
While talking about the advantages associated with investing in diamond jewelry, you can’t ignore the disadvantages. Let’s look at some of the risks involved with investing in diamonds.
Lack of trading options
We all know that buying diamonds is easy but when it comes to selling them, things get tough. This poses one of the risks, lack of trading options. You can sell them to the shops from where you bought them. Some companies would buy them but the price offered by them will be much lower than you expect them to pay. This is one of the major drawbacks keeping good investors at bay.
Lack of price transparency
Lack of transparency is another issue that holds people back from investing in this option. While you have an idea about gold’s price index that can be easily followed, but nothing of that sort exists for diamonds. The cost of a diamond solely depends on the supply and demand of the market.
Long-term benefits
It has its benefits but you need to have patience for it. They make for good long-term benefits but have nothing for short-term plans. They are not so much of a great tool if you need something that gives quick returns. It requires a lot of time so you can add it to your long-term goal plans.
Want to buy a diamond or check the price click here:- Geoffreys Diamonds
Geoffrey's Diamonds & Goldsmith 