Why invest in Diamonds

Why invest in Diamonds

Let’s define first what the qualities of a good investment are.

An investment that retain its value unaffected by stock market crashes, inflation, or anything that cause currency to devalue.

An investment that offers you some privacy from your finances being scrutinized, There is no paper trail when you own 100 percent of the asset.

An investment that requires no ongoing maintenance.

An investment that no one person or organization has a monopoly on.

An investment which is easily transported and has an international value.

And surprisingly (or not) Diamonds qualified for all of the above.

By looking at the historical price of Diamonds in the last year, you can see that their strength is very clear, and nothing seems to affect them, some diamonds did change, however they are not the investment type (this point will be discussed more soon).

Secondly it offers you peace and tranquility, that your money is safe.

Investment Diamonds are not like regular jewelry diamonds, they require no maintenance, there is no warring risk, and they don’t take a lot of space.

Many potential investors make a fair argument about investing in Diamonds claiming that it’s relatively a new market that has no strong investment background.

There are many different approaches as to why it is that way.

First of all, since the diamond industry began people always bought diamonds as a family fund, maybe it wasn’t call investment but a family fund is a type of investment.

Second of all in order for a diamond to be a good investment, it has to be bought in a good price (like any other good investment), it can’t be an investment when one man or one organization owns 100% of that market, you can’t have your invested money depending on one man’s bad day.

So as the diamond industry began, it was in a way a one man show, which is the first sign of a bad investment, DeBeers owned all the Diamond mines, and the price was what they said.

Second of all until the diamond made his way to the store, it pass 3 or 4 hands and hence lost its investment value (and nonetheless almost everyone how purchase a diamond, considered it as an investment).

Now a day the diamond industry is extremely far from being a one man show, new diamonds mines are discovered every year in different countries and different condition, more competition exists and they all want to sell.

Why invest at all???

Why can’t we just leave the money in the bank and let the people that “understand money” take care of it? After all just like we worked hard to make that money they work hard learning what to do with it.

So let’s start with the basics.

There are 2 terms which are comely mixed, however essentially they are very different, Currency and Money.

Currency is simply a demand note, in other words a certificate of deposit or claim right on the real value, a currency does not have value in and of itself, rather it is a medium whereby you can transfer value from one asset to another, the paper simply represent value that is stored somewhere else.

Money is a stored value, something that has a real value by itself and doesn’t just represent value.

So if our currency was a currency that represented a real value, you would have a good argument by leaving it in the bank and letting the bankers do their job.

However this is not the case, sadly currency is not real any more, the only way the currency can restore its value is if the value of the paper rises up so much that the actual currency (the bills) becomes money, but that’s far from happening.

History shows us that those who held on to real money, instead of currency, reaped the rewards many times over.

Holding real money instead of currency is in other words riding a horse which runs faster the inflation, not losing the rise doesn’t just do it, to survive you have to win.