Should i buy diamonds or gold

If you do not fancy yourself as a major risk-taker, sticking with investments such as a gold is a safe and rewarding way to maximize your chances of getting a solid return on your initial investment. Custom engagement rings are something of a trend right now, with many people opting to use their birthstone or other gemstones as a substitution for the traditional diamond.

However, if you are serious about viewing your jewelry as a long-term investment, you might want to think twice about swapping out your diamond. Although gold carries power in terms of inflation and general value, diamonds can often have a stronger resale value. Be careful when shopping for diamonds. Many people are desperate for the perfect engagement ring and end up wasting money on ridiculous retail markups, which generally will not be recouped in a resale period.

In fact, largely because of this insane mark-up, many diamonds purchased in traditional retail avenues can lose up to half of its retail value. You should not be completely discouraged — a quality diamond that ranks highly on the 4 Cs colour, cut, carats and clarity can still hold value after purchasing.

If you want to make a wise investment in diamonds, the first step is always to find a fair and honest retailer who will help you understand the true value of your pieces. Ultimately, both diamonds and gold offer unique benefits to investors. The shape of the diamond can also be a factor. Round brilliant is the most popular diamond shape about three-quarters of all diamonds sold are round so investing in a round brilliant diamond will give you access to a bigger resale market.

Always buy the best quality - that means a diamond with an Excellent cut grade as well as above-average colour and clarity. The opposite is actually true. An extremely high-spec diamond will only be of interest to a select few buyers those of bulging wallets and gold-plated mansions and will be harder to sell on. You should aim instead to buy a high-quality diamond of mass-market appeal - again, this will be more desirable to both trade buyers and private individuals.

This is really down to the fact they can always be made, whereas there are only a certain number of natural diamonds on the planet making them much more likely to increase in value over time. And finally, if anyone tries to sell you Chocolate, Champagne or Cognac diamond for a premium These are marketing terms for "So discoloured and brown, that they are worthless".

Find our Loose Diamonds here. If you wish to learn more about our Bespoke services, click here. Along this article we compared investing in diamonds to investing in stocks - and pointed out the differences between the two. However, you can also invest in diamonds alternatively by buying stocks of diamond related companies. Unfortunately, at the time of writing these lines, there is only one ETF Exchange Traded Fund that tracks diamonds and gemstones companies.

More ETFs like this are expected to rise within the next couple of years. Another way is to create a portfolio on your own. You can also invest in the diamond jewelry companies such as Tiffany and Harry Winston which is a combination of a mining company and a retailer. However, there is no alternative ETF or company stock that specializes in natural colored diamonds. Any investment involves a portion of speculation.

All you can do is try to make a smart one based on all of the information you can obtain. If we try to conclude all that was written above, not surprisingly, diamonds as an investment have their pros and of course their cons. I strongly believe that their upside and potential easily overcomes their cons. Just be aware of the downsides and use it wisely to minimize the risks involved. As Anja Winikka, site director of TheKnot. Think it will change anytime soon? Investing in Diamonds?

All about Diamond Investment. Reasons for Using Diamonds for Investment 2. How to invest in diamonds? GIA is a gemmological laboratory that has strict certification rules. This makes GIA-certified diamonds the most preferred gemstones.

Having a certified diamond is important while both buying and selling it. The first mistake that most investors make is to expect too much in a short term.

Always remember that diamond jewellery is not a get-rich-quickly plan. In fact, like other physical commodities, the price of diamonds fluctuates from time to time. The second mistake people often make is to pay too much.

The first rule of investing is buying low and selling high. That applies to diamonds too. However, buying low is rarely an option when it comes to diamonds.

Do your due diligence to avoid overpaying. The third mistake to avoid is buying the wrong diamond. This is where the certification plays an important role. Whether you are buying an engagement ring or a pendant, ensure you are getting only a certified diamond.

Diamond jewellery as investment offers a lot of opportunities provided you do your homework. They diversify your investment portfolio while giving you access to some of the best jewels in the world of jewellery.

Consider the pros, cons, and guidelines to stay ahead of your game. The Pros of Buying Diamond Jewellery as an Investment Over the last few years, the use of diamond jewellery as an investment tool has seen a rapid increase.