Investing In Diamonds
The use of diamonds as an investment and financial hedging tool has grown rapidly over the last few years. Diamonds don't take up room and have forever been used as an excellent means of transfer. The fact that such a small item can be worth so much money is astounding. You can easily keep a one million dollar diamond in the smallest of safes. A diamond is durable - It doesn’t break or wear off - As the hardest substance on earth you do not have to worry about anything happening to it.Real estate, gold, silver and diamonds usually appreciate in compliance to inflation. Unlike the others, diamonds are more durable and movable. This is also why even if you do not want to buy diamonds for investment buy just considering an alternative form for putting some money aside diamonds make a good choice.
How to Invest in Diamonds?
Their rarity gives them a very high value, in a very low volume. In comparison, a 1-carat or 0.2g diamond can have the same value as a 1 kg bar of gold. As is the case for gold, the value of diamonds increases naturally and regularly depending on depletion of the resource. However, a diamond investment should fall into your category of alternative investments with all it entails. This means that they should be a small portion of your portfolio.Since there is no universal price per unit of weight for diamonds, experts have to consult special price guides to keep up with the prices of diamonds. These guides, which are published quarterly, monthly or weekly, include the Troy Diamond Report, the Ajediam Antwerp Diamonds Monthly, and the Rapaport Diamond Report, just to name some.
If you had set your diamond investment budget on $20,000 then you should consider buying 2 x $10,000 diamonds or even split it into three. On top of that, don't buy two / three diamonds of the same type. If you had your heart set up on a pink diamond then it might be smart that the second diamond will be blue, green or even yellow. You don't know which will rise more or alternatively which will be easier to sell later on. Also, this is great since it will enable you to liquidate a portion of your portfolio in case you need to allocate some of your investment funds.
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