Diamonds as an investment alternative to the stock market and gold.During a time when the only thing for certain seems to be economic uncertainty, have you considered investing in diamonds? For months now, you’ve watched your stocks and other investments see-saw while watching gold prices rise. Now, more than ever, is the right time for a diamond investment. Show
After all, wouldn’t it be great to enjoy a diamond both to wear in a piece of jewelry and for investment purposes?! The diamond investment market has seen a robust recovery since the economic collapse devastated the luxury goods market just a few years ago. Numerous factors play into rising prices, but among the most significant is the recent news of De Beers cutting diamond mining production. With a marked increase in demand from China and diamond supplies simply drying up, De Beers has reduced production in order to extend the life of their mines. As a result, we expect to see prices continue climbing as the divide between supply and demand widens. With scarcity comes increased value, making this the optimum time to consider a diamond investment strategy to round out your portfolio. Shop Diamonds  Take a look at these Ten Year Annual Investment Results comparing diamond investments with other, more traditional, investment options* … Gold … up 411% According to the Merrill Lynch 2011 World Wealth Report, gemstones and jewelry account for 22% of all “investments of passion” for higher net-worth individuals. Even the affluent urbanites in China are paying attention to the rising value and are “buying diamonds in droves” according to a recent article in Financial Times. Diamonds are truly timeless, both in beauty and value. The higher their rarity, the more valuable they become. As a long term investment, natural diamonds not only maintain their value but appreciate at a far greater pace than most other investment vehicles. Other advantages of investing in diamonds include:
Diamond investment may not be for everyone, but during such volatile economic times wouldn’t it be wise to invest in an asset that not only stands a great chance of appreciating and looks great in a stunning piece of jewelry? Contact Ascot Diamonds (December 2000-December 2010, courtesy of Rapaport Diamond Report, 2011. RDI is the average price per carat for D-H, IF-VS2, VG+ diamonds)Yes, diamonds are a good investment. Diamonds are more than just one of the world's most precious gemstones; they're also one of the world's most reliable investment opportunities. That's because diamonds have increased in value since their first discovery thousands of years ago. Their demand has remained steady through wars, financial downturns, technological advancements, and other major changes in the marketplace. 1. Price FluctuationsOne reason diamonds are a good investment is that their prices don't fluctuate as much as other commodities. Diamonds are unique because they are not subject to the same economic forces as other commodities. For example, the price of gold is often affected by inflation, but diamonds are not. People will always need and want diamonds, no matter what the economy is like, making diamonds a more stable investment. 2. A Store of ValueRarity determines the diamond's value. The more scarce the diamond, the more valuable it is. So, when you purchase a diamond, you're investing in something that is rare and has the potential to appreciate over time. Also, diamonds are durable and last forever, making them a great value store. If you take care of your diamond, it will retain its value and can even increase in value as time goes on. 3. RecyclableOne of the great things about diamonds is that they are 100% recyclable. When done with your diamond jewelry, you can take it to a jeweler and have it melted down and made into something new. It is great for the environment and your wallet! 4. DurableOne of the reasons diamonds are such a good investment is because they are so durable. They are the hardest natural material on earth, which means they can withstand a lot of wear and tear. Plus, they don't fade or tarnish over time. With proper care, diamonds can last forever. That means they have the potential to be passed down as family heirlooms, which can increase their sentimental value. In addition, diamonds aren't subject to market volatility because they're not affected by inflation or other economic factors. 5. Growing in DemandIn recent years, there's been an increase in the number of people interested in buying diamonds. It is due to several factors, including that diamonds get valued as a status symbol and a sign of luxury. As the world becomes more affluent, more people are looking to buy diamonds to show their wealth. 6. Wide Acceptance as a Global CurrencyFor centuries, diamonds have been accepted as a global currency. They are easily traded and exchanged for goods and services. Additionally, diamonds are very liquid assets, meaning you can sell them quickly and easily. You can cash in your diamond anytime without penalty or loss of principal (the original amount invested). If you sell your diamond today for $10,000, for example, you'll still have $10,000 tomorrow should you decide to buy it back into the market again. 7. A Solid Alternative to Paper MoneyDiamonds may be the right investment if you're looking for a solid alternative to paper money. Unlike cash, which can lose its value overnight, diamonds tend to hold their value over time. Diamonds have outperformed the stock market in eight of the last ten years. 8. Engagement Rings Work as Retirement FundsYou are investing in your future when you purchase a diamond engagement ring. The value of diamonds increases over time, so when you sell your ring later down the road, you will be able to get a good return on your investment. Additionally, diamonds are a tangible asset you can pass down from generation to generation. 9. Affordable Alternatives for InvestmentsInvesting in diamonds is a great way to get more for your money. With prices starting as low as $200 per carat, they offer an affordable alternative for investors. In addition, diamonds are durable and will last a lifetime with proper care. They can also appreciate over time, making them a smart investment for the future. Final ThoughtsHere at Siebke Hoyt, we've got you covered. Not only do we have diamonds that are great for investment, but our pieces are of the finest quality. They will last you for years. The best part is that, because diamonds retain their value so well, you'll be able to resell them down the line when your tastes change or you need some cash. For any inquiries, contact us today or visit our website. We are here to help. Your diamond investments are safe with Siebke Hoyt Jewelers. Do loose diamonds hold their value?The short answer is yes, but the long answer will walk you through the fundamentals of diamond trading (buying and selling). However, unlike gold, diamond jewellery and loose diamonds maintain a stable market value. Instead, it is contingent upon market forces governing the cost and availability of these gems.
Which type of diamond is best for investment?According to a well known diamond trade organization the ideal diamond for investment is a Round Brilliant from 1.01 to 1.49 carat, D-H in color and from IF (internally flawless) to VS2 (very slightly included) clarity.
Is it wise to invest in diamonds?Diamond Jewelry Investment and Diversifying
Investing in diamond jewelry itself is also a good way to diversify your overall investment portfolio. Acquiring physical investments like diamonds and precious metals is a good way to protect yourself from the fluctuations in other investments you may have, like stocks.
Do people buy loose diamonds?Loose diamonds are most commonly purchased to be set into an engagement ring or other diamond jewelry, however, there are also people who choose to buy loose diamonds simply for investment purposes.
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Are loose diamonds a good investment?
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