Diamonds are precious, rare, mysterious, beautiful, magical and romantic tokens of love. Diamonds are mostly considered as a secure investment, but on top of that, they also give you a feeling of beauty, luxury, belonging, passion and love. No other financial investment can offer you that much!
During difficult times a recommendable investment mix is:
1/3 real estate
1/3 fixed-interest securities
1/3 movable assets/commodities, such as diamonds
Diamonds are especially suitable as movable goods/assets, because they carry some essential advantages:
Protection against inflation, market collapse, currency reforms
Anonymity (no registration required)
Bankruptcy proof
World-wide convertibility, meaning that diamonds are – together with gold – the only international accepted alternative currency which keeps the same value all over the world
No taxes on value gains (= tax free betterment)
Hardly no maintenance costs
Very prestigious
Price independence – prices are independent of government laws and hence diamonds better retain their values, even during recession.
Robust price performance – historically diamonds have recovered well from price and economic slumps
Not to forget: diamonds carry an important emotional value, lasting multiple generations
Theoretically a (world) war could devalue any currency, real estate can lose its value, new technologies can replace resources, competition can ruin companies, but nothing can systematically undermine the long term value of diamonds. While most diamond mines are nowadays known, with time diamonds will become even rarer, just as any natural resource will. This fact carries the key fundamental boosting effect on the long term value of diamonds.
Diamonds are – together with quality artworks – one of the very few goods that combine its practical use with its investment aspect. Meaning: while you can wear your diamonds set into/as jeweler, simultaneously they symbolise your most secure investments.
Strong supply & demand – predicted widening of the supply demand imbalance underpins price with a strong chance of price acceleration
Finally, while most of the other luxurious goods, such as cars, furniture, furs, etc. lose their value over time, this is not the case with diamonds, precisely because of its durable/unbreakable nature.
Conclusions:
When investing to gain very high or speculative returns, you shouldn’t invest in diamonds.
If you want a very secure investment, which keeps and strengthens its underlying value, and which you can convert at any given time, diamonds are the best for you.
