Alternative: invest in diamond

  • Investing in diamonds offers efficiency and security
  • Is investing in art in danger of disappearing
  • Wine as an investment is on the rise

To invest in shares is not without risks. There are good alternatives that fluctuate much less in value: one can invest in diamond, art or wine. They not only yield a nice profit, but are also very enjoyable and give one some kind pleasure. An alternative investment does require a certain amount of expertise or the help of an expert. Because what makes art valuable or what makes a diamond suitable for investment?

Invest in diamond, jewellery or gold

Jewellery, diamonds and gold can be an interesting alternative for a classic investment, because their value will not be influenced by economic crises. Gold continues to be valuable, which inspires confidence in an unstable economy. As an investment good, this precious metal has kept its status throughout history. It is possible to purchase an actual gold bar, but nowadays there are gold shares available as well. These are shares of large gold mines. Pieces of jewellery are also a great investment, especially rare pieces in their original state in good condition. Natural pearls and coloured gems are scarce and therefore very valuable. The way a jewel is manufactured is also important and even original packaging material can increase its value. To judge the value of a jewel it is better to obtain enough information from an auction house or an appraiser. However, the ‘queen’ of alternative investments is diamond. Diamonds have great value and appeal. Due to the growing Asian markets, the demand for diamonds increases continuously. In recent years no new diamond mines have been discovered, meaning supply cannot keep up with the demand, making it very interesting to invest in diamond. The rule to let an expert help you applies here as well.

Please find here more information regarding investing in diamonds:

Invest in art

Art is timeless and has always been an interesting investment. Still, for this form of investing you need a rather big capital.  When you invest in diamond, this is not necessarily the case. We will make a distinction between modern and older art. The second one has proven its value and rarely fluctuates. Modern art is much more sensitive to trends. Prices of modern art can therefore peak tremendously, but can collapse the next day. This means investing in modern art can yield a high short-term profit, but is equally a risky venture.  More and more people are talking about an art bubble, in analogy to the artificial high ratings of dotcom-shares a few years ago. When investing in art it is also recommended to obtain the advice of an expert.

Invest in wine

Wine as an investment is on the rise. After all, good quality wine increases in value as the years go by. Some bottles can be kept for over 50 years. To judge the quality of the wine, one does not only need a thorough knowledge of wine, but also a considerable budget. Evidently the more expensive wines are the ones that increase in value, the real top wines can increase up to 30 % in value each year. These are mostly French wines. A wine investor has to store his investments under optimal conditions. A good wine cellar with the correct temperature and humidity is crucial for the wine to keep its investment value. There are also investment funds that invest in quality wines. This way it is possible to benefit from the increase in value of certain wines with a more limited budget.

An investment portfolio has to be diversified and should contain both traditional as well as alternative investments. To complement classic investments such as shares, to invest in diamond is definitively something to consider. 

Author: San Meuleman

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