Diamonds are especially suitable as movable assets, because they carry some essential advantages:
- Protection against inflation, market collapse, currency reform
- Anonymity (no registration required)
- Bankruptcy proof
- World-wide convertibility, meaning that diamonds are - together with gold - the only international accepted alternative currency which keeps the same value all over the world
- No taxes on value gains (= tax free betterment)
- Hardly no maintenance costs
- Very prestigious
- Price independence - prices are independent of government laws and hence diamonds better retain their values, even during recession
- Robust price performance - historically diamonds have recovered well from price and economic slumps.
- Diamonds carry an important emotional value, lasting multiple generations.
- Theoretically a (world) war could devalue any currency, real estate can lose its value, new technologies can replace resources, competition can ruin companies, but nothing can systematically undermine the long term value of diamonds. While most diamond mines are nowadays known, with time diamonds will become even more rare, just as any natural resource will. This fact carries the key fundamental boosting effect on the long term value of diamonds.
- Diamonds are - together with quality artworks - one of the very few goods that combine its practical use with its investment aspect. Meaning: while you can wear your diamonds set into/as jewelry, simultaneously they symbolise your most secure investments.
- Strong supply & demand - predicted widening of the supply demand imbalance underpins price with a strong chance of price acceleration.
- Finally, while most of the other luxurious goods, such as cars, furniture, furs, etc lose their value over time, this is not the case with diamonds, precisely because of its durable/unbreakable nature.
Conclusions:
- Diamonds are mostly considered as a secure investment, but on top they give you also the feeling of beauty, luxury and belonging. No other financial investment can offer you that much!
- When investing to gain very high or speculative returns, you shouldn’t invest in diamonds.
- If you want a very secure investment, which keeps and strengthens its underlying value, and which you can convert at any given time, diamonds are the best for you.
Click on this link for more information about the reasons why you should invest in diamonds.
