You can always invest in diamonds, as they say, they are adorable! Yet careful planning and understanding the ground inside and out will help you make better decisions. Since not all diamonds are worth an asset, you must carefully choose only the costliest and rarest ones in the domain.
To help you make better choices in terms of assets, we have highlighted some crucial benefits of investing in the expensive diamonds below:-
Rare Diamonds Are High In Demand
If you are considering investing in pink diamonds you are on the right track! They aren’t only rare but also one of the priciest diamonds available after red diamonds across the globe. The fact is that owing to their rarity, as 90 per cent of their production is solely sourced from Argyle mine of Australia, they are also extremely high in demand worldwide. Similarly, other rare diamonds like red diamonds, blue diamonds, yellow, greens, etc. are extremely precious and luxurious assets to invest in. Further, one must thoroughly look for reputed and trusted certifications for their asset protection and easier resale.
Supply And Demand Factors
Rare diamonds are most profitable considering them as top investment choices in the market available today. They hold powerful historic performances that in itself indicate their value in the supply and demand chain. Since they are limited in production and hold no prospect of increasing in their supply for as long as financial investors can predict since 1997, they remain significantly high in demand. Additionally, many renowned mines producing rare diamonds will be becoming exhaustive in the coming future signifying a more constrained sale.
They Proffer Strong Long-Term Returns
Rare diamonds are made for only long-term investments since their strong history indicates a meaningful rise in returns. Thus, they are also more profitable when compared to other tangible assets like property. Yellow, blue, and pink diamonds are recognized worldwide for their strong investment benefits in the long term. Investing in pink diamondshas seen almost double price gain in 6 to 7 years. Which is more than expected from other investment choices. However, if you are looking for short-term returns, rare diamonds might not be a suitable option.
They Aren’t Vulnerable To Market Changes
Pricey diamonds are protected against the volatility of the market. Rare coloured diamonds have seen a significant appreciation of somewhat between 10 to 20 per cent each year on average. The rarest they are, the greatest growth they encounter. Diamonds of exceptional and rare colours are usually protected against the market volatility that is quite frequently observed in other assets and equity markets including precious metals like gold. Fluctuations in the market have largely impacted traditional investment choices like property, stocks, gold, etc. however, the rareness of coloured diamonds has made a more evolved and safe choice.
On a longer basis, rare coloured diamonds are limited and restricted in terms of their production. Their scarcity makes them more valuable. Therefore, in the world market, they have occupied a strong and stable base. With such stability and reliability for growth, they have become a largely significant consideration for long-term investments.