Are Diamonds a Good Investment?
I have lost count of how many times I’ve been asked this question. It seems like every dinner party or social occasion becomes a forum for this seemingly much maligned fact. Of course I love it because it presents me with an opportunity to not only promote our product but also to speak with passion about a subject I happen to have great knowledge on. The conversation inevitably begins with a cynic who claims diamonds and jewellery are nothing more than a form of mostly female adornment and have no intrinsic or resale value at all once purchased. I normally answer this by asking what kind of investment they are talking about.
If one has spare money and you wish to invest and see a profit within a fixed short term period of time (e.g. 6 to 24 months) I wouldn’t advise a diamond jewellery investment.
If on the other hand you wish to invest in a commodity that has been known to hold and increase in value consistently for the past 80 years then diamond jewellery most definitely becomes a viable option. And before one starts comparing its performance one on one with other investments such as property or stocks and shares give some consideration to the unique properties a piece of diamond jewellery brings to the party.
After all, what other investment offers the added value of being traditionally representative of one person’s love and commitment to another while also holding its value throughout the years of partnership. Add to this the fact that it has no equal as a portable form of concentrated wealth, which can be naturally worn on one’s person and can be easily converted into cash anywhere in the world. I mean, imagine being stranded out of your home country, having lost all your possessions and documents and have nothing else but the diamond ring on your finger or diamond earrings in your ears. You will get at least market value for that diamond jewellery and whether that is more or less than you paid for it will depend on how long you have owned it. In this emergency situation what good are your property investments or stock portfolios back home?
Investment for Life
This is why I call diamond jewellery an investment for life. It is very seldom purchased specifically for resale and, hopefully, it serves its main purpose, which is as a romantic gift of love and representative of a lifetime of commitment and loyalty to your chosen person, and to be handed down to your descendants for use by them in their lives. They may choose to reuse it as jewellery and keep it for sentimental reasons or they could sell it and use the money received for some useful purpose in their lives. I’ve also purchased many items of diamond jewellery from people who have had it for many years and now have need of money for some other reason such as an urgent medical procedure or the purchase of a new car. Perhaps it’s the extra cash needed to pay for a much needed holiday later in life. Whatever the need, this diamond jewellery was worn and cherished for many years and then performed a fantastic duty by helping to pay for something much needed.