Diamonds vs gold

Commodities are referred to as an alternative investment category. Especially diamonds and gold are often subjects of a comparative analysis by potential investors. We summarize here the most important differences between both natural resources:






















































Gold

Diamonds
Safe haven Medium High

CAGR* (1985 - 2010)

8.9%

10% for 3 ct

Longterm volatility

High

Low

Weight for the same value**

150 gr

0.2 gr for 1 ct

Transportability

Low

High

Tangibility

Medium

High

Esthetics / Emotional value

Medium

High

Certified

Yes

Yes

Market

Public

Private






*



Compounded annual growth rate


**Based on 1oz Gold Price and 1ct Diamond Price, Jan 2013


Although diamonds and gold appear together in jewellery, the valuation of these 2 resources is completely different. These differences can be best explained by the fact that each diamond is a heterogeneous and unique piece with its own specific characteristics whereas gold is a homogeneous substance which can be valued as a commodity.

Learn more about diamonds as an investment Click here for more information about the characteristics of diamonds.