Can diamonds be an investment portfolio?

Answer 1

Yes, Absolutely!

Benefits of Investing in Fancy Diamonds

Very few people know the importance of investing in diamonds. Some do not even know that you can invest in diamonds. The truth is that investing in diamonds is a great idea. This can be attributed to the fact that diamonds are rare and luxurious, that is why investing in them is profitable. However, do you know the benefits of investing in fancy diamonds?

Wealth PreservationDiamonds

are recession proof. That means that their value is not affected by recession. Over the last 30 years, there have been some hard economic times. During these times, investors learned that fancy diamonds provide a reliable store of wealth. The diamonds did not lose their value during the recession and some of them appreciated in value.

Capital GrowthDiamonds

have a history of price appreciation. In the recent past, the price of diamonds has been increasing by approximately 20% per year. Diamonds of a certain carat size have been appreciating in value by up to 40% per year.

Correlation With Other InvestmentsUnlike

other financial products, diamonds are not affected by market forces. This is due to their rare nature.

Portability

Unlike

gold, diamonds can be taken to any place in the world and sold there. It is the most portable form of wealth.

Risks InvolvedInvestingin

fancy diamonds is less risky as compared to other forms of investments.

Rare and UniqueIt's

no secret that diamonds are rare and unique. People derive pleasure from owning such a rare commodity.

These are some of the benefits of investing in rare and fancy diamonds. However, you should bear in mind that the start-up capital can be a hurdle. Since diamonds are rare and considered a

luxury, their asking price is not as cheap as you might think. The price depends on the type of diamond and the carat size. Therefore, if you wish to invest in fancy diamonds, you need to have a considerable amount of money set aside. You should also be prepared to invest for several years as that is the only time that your investment will yield meaningful returns.