Smart in Every Way

Why would I start investing in diamond jewellery?

Why would I start investing in diamond jewellery?

  • How do I allocate my portfolio?
  • What will diamond do for my portfolio?
  • What value do diamonds hold?

Investing in commodities is a sensible move for every portfolio, but many beginning investors steer clear of diversification as it seems to make the portfolio more complex. It is, however, best to invest smartly from the very beginning. How do I allocate my assets? Where does diamond jewellery fit into my portfolio?

How do I allocate my portfolio?

As a novice investor, the most important element to getting started is determining your investor profile. It takes into account, among other things, the period over which you wish to invest, how much risk you are willing to take and how closely you are prepared to monitor your investments. You will, however, find out along the way that no matter which type of investor you are, there is always a place for diamonds in your portfolio.

This specific commodity has so many variants in quality and the subsequent liquidity, that the most defensive as well as the most dynamic profiles can find a gem fit for their investment capital and demands.

What will diamond do for my portfolio?

When you start researching your investment, you will often read that a diversified portfolio is key for every smart investor. Depending on which type of investment in diamond jewellery or diamonds you choose, you are looking at an investment on the medium or long term. This will allow your investment plenty of time to generate a profit before you decide to liquidate. When you do, be sure to be patient in finding a buyer for your diamonds. Hasty selling might lead to losing profits, or even losing on your starting capital.

Diamonds allow you to choose your input freely depending on their quality, weight, and form. An investment in diamond jewellery, on the other hand, will render a profit in a different way than loose diamonds would.

What value do diamonds hold?

Although loose diamonds are a stable and profitable asset, an investment in diamond jewellery usually comes across as more safe and valuable. This can be misleading since liquidating diamond jewellery can be more challenging than selling loose diamonds. On the other hand, diamond jewellery generates different types of value compared to loose diamonds. Whereas loose diamonds owe their value mostly to supply and demand, diamond jewellery carries compound value. Not only the intrinsic values of diamond and precious metals add up, they also enjoy the value added by the craftsmanship it took to compose the jewellery. Finally, emotional value and aesthetics also contribute to the eventual worth.

Where can I choose a smart investment in diamond jewellery? How can I be sure to pick the right piece? Contact the diamond experts at BAUNAT DIAMONDS for professional advice.

Author: Inge De Wee
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

START TO INVEST See our selection of loose diamonds

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