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3 main reasons you should invest in diamonds

3 main reasons you should invest in diamonds

Real estate, cars, coins, gold, bonds and what not, there are more possibilities than one can think of when you are looking at investing your money somewhere.If you’ve already hit the Real Estate market like many in 2016, then here’s a highlight of the top 3 main reasons you should invest in diamonds if you haven’t already done so.

  • Emotional Value
  • Profitability
  • Crisis proof

  • 3.00 carat solitaire ring in red gold with princess diamond From USD 980
    (excl. VAT)
  • 0.70 carat solitaire ring in platinum with princess diamond and side diamonds From USD 2.560
    (excl. VAT)
  • 0.75 carat solitaire ring in yellow gold with princess diamond and side diamonds From USD 2.500
    (excl. VAT)

Emotional Value

Before diving into the monetary advantages of investing in diamonds, we are going to briefly delve into the emotional value that can be tightly connected to them.

Thanks to a smart and successful marketing campaign that was developed by an ad agency in the early 1900s for a large manufacturer of diamonds, diamonds have been considered the ultimate symbol of romance and marriage for the past decades. And although that was initially more localised to the United States and Anglo-Saxon countries, it can be witnessed in countries all over the world today.

Making the diamond and its rarity a primary reason to invest in them.

Profitability

Because diamonds are a natural product, there is reason to believe they are not endless. There are many active mines today in countries such as Canada, Russia, Botswana or Namibia, but these mines will not be able to function for decades. There always comes a point where it is just financially, physically and geologically impossible to dig deeper or mine the diamonds further. And although there is always prospection for diamonds in various parts of the world, there is no guarantee that more deposits will be found.

This makes diamonds unique and it has been proven that although diamond’s values may fluctuate a little, they can only increase over time.

Furthermore, diamonds have brought to the countries where the deposits were found, vital sources of revenue for these countries to build essential infrastructures such as schools and hospitals, revenue for food and safe drinking water and overall better living conditions. GDP per capita has increased drastically in some countries in Africa for instance, making diamonds crucial for their development.

Crisis proof

It may sound quite boastful to say that diamonds are crisis proof. They may of course loose some value temporarily at some points in time when the world is facing a large crisis. But overall, through time, it has been noticed that diamonds do maintain a certain value by providing protection against inflation and market collapses.

It is also important to bear in mind that diamonds are, along with gold, the only international accepted alternative currency which keeps the same value all over the world.

Furthermore, their durable and practically unbreakable nature make diamonds the most secure asset to invest in, that will not change over time.

BAUNAT is the worldwide reference for diamond related investments. Thanks to an established network of supply, they have the capacity of buying diamonds at the very source thereby providing you with exceptional diamond prices.

Author: Naomi Howard
Source: BAUNAT

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