Key Factors That Make Investing in Diamonds A Great Decision

Diamond investments, especially investing in pink diamond has a lot of untapped potential that are yet to be fully discovered by the investors. If one does a bit of research, they would quickly find evidence that would suggest the diamond industry stayed intact even when the global economics was crumbling back in the days of financial instability. Experts came forward that diamonds are the only investment medium who’s ROI is guaranteed to increase more than 15 per cent annually.

The main reason for traditional investment mediums to fluctuate thereby causing a sense of distrust among investors is political and economic instability all over the globe. Often news is breaking where popular world currencies are taking sudden dives while others are gaining in value overnight. Situations like these are compelling investors to seek out and put their money on investment mediums that are stable and secure.

Other than these, here are a few more factors that make diamond investments compelling:

Diamond investments are stable

Diamonds proved to be the go-to option for a majority of investors these days. The primary reason is – the diamond industry is independent on the global financial market. It means even if the market conditions are fluctuating, the value of your diamond investment won’t go down. It will only appreciate with time.

Diamond is a rare commodity making it a valuable and secure investment medium

Diamonds, by nature, is a rare item on top of that, if one prefers to go for coloured diamonds the situation becomes all the more favourable for the investor. Colourless diamonds are readily available in the market but coloured diamonds are rare. Investing in something rare, such as a naturally coloured diamond is a great idea. The rarer the diamond, the higher is your returns when you plan on liquidating it.

Another factor that makes coloured diamonds a great investment medium is its ability to let you diversify your investment portfolio. Invest in both coloured and colourless diamonds and make the most out of the one that performs the best in the market at any given point in time.

Investing in rare coloured diamonds will give you the highest returns

A naturally coloured diamond is by default rare. The chances of getting your hands into one are 1 in 10,000 – meaning, when you mine 10,000 diamonds, only one among the lot could be a coloured diamond. On top of that, the colour of the diamond also plays a crucial role in ascertaining its value and ROI. For instance – yellow, brown or black diamonds are more common while pink, orange and red diamonds are the rarest of them all. If you want the highest returns, you should go for the rare colours.

Bottom Line

The demand for diamonds is increasing at an exponential rate especially from developed nations like the USA and China as well as from developing nations like India. The reason is simple – the middle-class population of these countries is finally seeing an increase in their annual income. It means that they have the extra capital that they can invest in making their future secure. On top of that, people these days understand that investment mediums need to be both stable and secure as well as capable of providing high returns when liquidated. Investing in diamonds can give you all these.

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