Diamonds have been the object of desire since time immemorial. His figure is associated with romanticism, passion, and luxury. They have also considered a refuge value with a guaranteed revaluation, but are they a good investment?
Are diamonds a good investment?
You have to think that when you buy a diamond you have to pay 21% VAT, and you also have to discount the margin of the jeweler, which may be smaller in the case of the more traditional jewelry stores, but it can be very high in the most famous international brands. In the best case, the diamond will have lost 50% of its value as soon as it leaves the jewelry store.
Diamonds are proof of precious, exceptional, mysterious, beautiful, magical and romantic love. They are usually considered a safe investment and also provide a feeling of beauty, luxury, belonging, passion and love. No other economic investment will offer you so much!
During difficult times, mixed investments consisting of:
- 1/3 of real estate.
- 1/3 of fixed interest values.
- 1/3 of movable property, such as diamonds.
Diamonds are especially suitable as movable goods because of the main advantages they offer:
- Protection against inflation, market crashes, currency changes.
- Anonymity (no registration is necessary).
- They are not affected by bankruptcies.
- Worldwide convertibility, that is, that diamonds represent, together with gold, the only internationally accepted alternative currency with the same value worldwide.
- Value gains without taxes (= tax-free surplus value).
- High prestige
- Price independence: costs are independent of government laws therefore; rubies preserve their worth much better, even in durations of recession.
- Price strength: historically, diamonds have recovered well from price declines and economic crises.
- Do not forget that diamonds have an important sentimental value that can be passed from generation to generation.
- Theoretically, if a (world) war occurred, any currency would be devalued, real estate could lose its value, new technologies could replace resources, competition could ruin companies, but no factor would weaken the long-term value of diamonds At present, most diamond mines are discovered and, therefore, over time, diamonds will become increasingly exceptional pieces, just like any other natural resource. This fact demonstrates the key effect of the increased long-term value of diamonds.
- Diamonds are, along with respected artworks, among minority worth’s that combine functional use and also a financial investment: you can put on a ruby installed on a gem and also, at the very same time, appreciate your best financial investment.
- Strong supply and demand: the expected increase in the imbalance between supply and demand supports prices and implies a high probability of price acceleration.
- Finally, while other luxury goods, such as cars, furniture, furs, etc., lose value over time, diamonds maintain their value, precisely because of their lasting and unbreakable nature.
- If you want to obtain speculative or very high yields you should not invest in diamonds.
- If you want a very safe investment visit argylediamondinvestments.com.au, that maintains and reinforces its underlying value, and that you can convert at any time, diamonds are the best option.