007 Reasons Why Diamonds Are A Good Investment

So Diamonds are a girl’s best friend. According to James Bond and Shirley Bassey they’re forever, and according to Rihanna we’re beautiful like diamonds in the sky. So from popular culture we know that diamonds are pretty important, but have you ever used them for investment?

Image by MattHurst / Flickr

#1 – How secure are your savings?

In light of the recent banking crisis in Iceland in 2008 and the after effects which are still being felt today, just how secure are your finances in your chosen savings account? It’s a question which is nearly impossible to answer with any great level of certainty. World finances are in a constant state of heavy turbulence, are your savings going to be able to weather the storm of another banking collapse?

#2 – Inflation proof

Whilst the currency of your country is constantly hit with rising inflation, your investment in diamonds isn’t. Essentially, whilst your Pound or Dollar will buy you less and less as time passes on and inflation keeps creeping, the value of your diamonds is secure.

#3 – Limited Supplies

By doing some simple research you can soon find the facts you need about why diamonds are worth investing in. Coloured diamonds are an especially rare occurrence and with diamond mines yielding lower and lower results of these fantastic diamonds, a simple investment in coloured diamonds now could see yourself making not only a secure method of savings but also a sound investment as the value of coloured diamonds continues to rise.

#4 – Increasing Demand

It’s not only the Western world which is interested in the investment of diamonds. Forget Elizabeth Taylor’s astounding collection, if you want to really invest smart and win big in the future you should build your own diamond collection now. As time ticks along the worth of diamonds not only increases, but so does the demand. Just look at Indian weddings as a good example. On the night before their wedding day it is customary for the parents of the bride to gift her jewellery. In the past this jewellery used to consist of mainly gold asset management, but nowadays it is becoming increasingly popular for this jewellery to be diamond jewellery, and coloured diamonds too. If you’ve got a collection of diamonds and coloured diamonds, you could be selling big as the Indian diamond jewellery scene continues to grow over the next few years.

#5 – low interest savings accounts

Not only are savings accounts a riskier prospect for your money, but they’re also significantly less value for your money than they used to be. Low interest rates mean that investment in diamonds will be much more likely for you to obtain higher profit margins in the future.

#6 – Safer than houses

The housing market has also been hit pretty badly with the financial crisis. There is now more risk in investing in additional property than there is with the investment in diamonds or other precious materials such as gold. Many homes have been hit with negative equity, and with higher mortgage rates and banks less likely to loan than ever before, that nice little earner of a second property is looking like more risk than it’s worth.

#007 – GIA Certification offers protection

Whereas interest rates can be protected at low rates for the next ten years, what good is that when your diamond collection can be not only protected (as the value of diamonds hasn’t dropped in the last 30 years) but they are also more than likely set to increase in worth. The diamond equivalent of a protected interest rate is the Gemological Institute of America Certification. This GIA rating proves your diamonds worth to potential investors.

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