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.
