Purchasing diamonds as alternative investment

  • Investing in gold
  • Investing in shares
  • Investing in investment funds
  • Buying diamonds

With interest rates historically low, demand for alternatives grows. What are the possible alternatives? Let us consider some possibilities.

Investing in gold

Gold prices can fluctuate significantly, depending on events that are out of our control, such as election results, harvests, decisions made by actors on the financial market and so on…

In times of crisis and war, gold prices hit their peak. In 2011 the record level was reached when the financial world was shocked by the European debt crisis. At that time, an ounce of gold was worth 1900 dollars, while the same amount is worth 1200 today.

Investing in gold is considered as an insurance for various crises. However, most investment advisors recommend to spend maximum 10 percent of the investment amount to in gold.

Investing in shares

Prices in shares are volatile as well. Looking at the case of the Fortis-shares for example, at the end of 2007 a Fortis-share was still worth 20 euro, whereas one year later it was hardly worth anything.

Those who want to invest in shares must carry a few points of concern in mind, taking into account risk spreading, unforeseen costs for transactions, taxes… Investing in shares is also time consuming because you have to follow up on the market evolutions and act accordingly.

Investing in investment funds

An alternative to investing in shares is joining investment funds. These funds save you a lot of work and spread the risk over more shares, obligations, and so on. In this regard too, part of the available investment capital goes to costs, such as entry and management fees. There are various providers of investment funds and the return can vary greatly. Some research in advance is thus necessary.

Buying diamonds

Due to the growing economies in Asia and the population growth the demand for diamonds structurally rises. As a result of the announced closures of diamond mines, the demand for these gemstones is going to exceed the supply within a few years. This makes diamonds a worthwhile investment. They offer an almost guaranteed added value.

Interested in the possibilities of investing in diamonds? BAUNAT DIAMONDS will assist you.

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Author: San Meuleman