Diamonds are a Strong Investment

Why Diamonds are a Good Investment

Diamonds are a terrific form of alternative investment

Today, with the world economy on shaky ground, a few standout investments have been gaining popularity. Art, for example has remained a fairly stable investment. One of the most seriously underutilized alternative investments is diamonds.

Reasons you should consider investing in diamonds:

  • Since 1934 DIAMOND prices have increased more than the rate of inflation thereby protecting the real value of capital. In recent years diamond prices increased during a benign inflationary period, thereby offering solid capital protection in addition to capital growth.
  • Diamonds are the most concentrated form of storing wealth. They also offer you financial privacy not available elsewhere.Unlike other financial investments a diamond investor has 100 percent direct ownership of a portable tangible asset of proven value.
  • Diamonds require no ongoing management or up keep. They do not incur property taxes or require liability insurance. Unlike commodities and other investments, diamonds are insulated from the daily fluctuations of the markets and are not as likely to reflect sharp price changes. The international demand for collectible diamonds greatly exceeds the supply.

Diamonds have performed consistently well throughout economic downturns and today continue to be a top choice among investors. Diamonds, unlike many other alternative investments, retain their value even when the rest of the economy bottoms out. The value of diamonds has been climbing even higher in the last decade. Just five years ago, the average retail per-carat price of a ten-carat colorless diamond was $70,000. Today, it is more than $200,000 per carat.

Additional reasons that Diamonds are such a great investment choice is their almost-guaranteed rarity. Diamonds are rare and grow scarcer every year. An investment in diamonds will grow in value as the world's supply of diamonds decreases. There is an almost universal belief that diamonds have enduring value. When asked by outsiders about "investing" in diamonds, I always said to invest in a beautiful stone or piece of diamond jewelry like you would in a beautiful piece of art or fine furniture: because you love it and it will bring you pleasure to look at it and use it.