• What is investing and how does it work
  • Possible risks
  • Advantages of investing in diamonds

What is investing and how does it work

Let’s start from the top for once and explain what is investing. Investing is the art of making your money work for you through one or more investment components in the hopes of generating more income or profit over time.

Warren Buffet, an investor guru that is well known by everyone, once said that investing is “the process of laying out money now to receive more money in the future”. And that resumes it perfectly.

There are different components or assets you can invest in, from the more traditional real estate, to bonds, stocks, funds and commodities such as gold and diamonds.

But whichever component you choose to invest in, it is very important to understand how they actually work in order to achieve success. You can never of course avoid risks nor guarantee a successful return, but knowing your portfolio is crucial to making it work.

Possible risks

Whichever the component or asset you choose to invest in, you need to know that you are never 100% safe from losing money as risks and returns go hand in hand in the investment world. Furthermore, it is commonly known that the more risks you are willing to take the higher the return.

Possible risks that you need to keep in mind are: investment depreciation, falling prices, currency conversion, higher interest rates or it could even be that the company you invest in does not fulfil its obligations.

So, what can be done to minimise risks? The main option is to diversify your portfolio and invest in different assets or companies. That would directly limit the risks and allow you to sleep tightly at night. One of the possible diversification we would recommend is investing in diamonds.

Advantages of investing in diamonds

As you may already know, there are many known advantages to investing in diamonds today.

Diamonds are beautiful, they are sparkly and brilliant, there is no doubt about that, and they have this aura about them making them unique and special and a perfect asset to want to invest in.

On the financial side of things, diamonds are perfect because they provide a hedge against inflation and are considered crisis resistant. It has been observed that diamonds offer long term profitability through increasing demand throughout the world and decreasing supply due to limited natural resources.

If you have any questions about investing in diamonds, then look no further, because BAUNAT and its team of specialists is the worldwide reference in this field. BAUNAT has detailed and comprehensive propositions that will cover your every request and thoughts. 

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