As each are popular investment commodities and natural resources, gold and diamond are often analytically compared by potential investors.
Diamond and gold, though often paired together in jewellery and seemingly similar investments, are valued in a completely different way. Each diamond is a unique piece with its own specific characteristics concerning carat, colour, clarity and cut. On the other hand,gold is a natural resource and homogeneous substance, so it’s valued less based on unique characteristics.
Let’s look at some of the key differences between investing in diamonds vs gold:
- The value of gold is more volatile than diamonds when it comes to investing, as diamonds sustain and increase value more reliably.
- Diamonds are generally crisis-resistant and inflation proof, which offers a more secure investment.
- With a variety of cuts, colours, and sizes, each diamond is unique, offering a more exclusive and irreplaceable replacement.
- Gold is traded on a public market while diamonds are traded privately, creating more of a close off market for resale.
- Depending on the type of diamond you invest in, it can be more challenging to find the right buyer for resale. With the right expert to guide you, it’s easier to liquify your investment.
To learn more about the importance differences between gold and diamond investments, click here.
Further, click on this link to check out our article on the evaluation of diamonds so you can go into your diamond investment with all the important knowledge. Want to learn more about diamonds for investment? The experts at BNT Diamonds can help. Get in touch with us today by booking an appointment in one of our showrooms or requesting a quote.
