Is diamond a stable asset?

Paper money and cryptocurrencies are a promise. Their value is not backed by anything and that is the reason why central banks can print billions of dollars and developers can issue billions of tokens. Diamonds are the smallest, lightest and the most concentrated form of wealth in the world today. But may a diamond be an option for a long-term investments?

Diamonds are highly portable, easy to store, and of course wearable. They are also one of those unique investments that can be purchased in one currency and sold in another. Some people invest in stocks of mining companies or producers. This option is the riskiest, since recently mining company and producer stocks have been weak. For example, De Beers and Rio Tinto, world’s leading diamond producers, said their underlying earnings were down 23% and 75% respectively from a peaks in May 2008 to today. Opposite to this, diamonds have been stable asset class for long time. Total appreciation between 2005 and 2019 has been exponential. What’s most interesting, they were chosen as investments even during great financial crises.

Investing in diamonds may seem a billionaires’ form of investment. But for the last ten years it has garnered the attention of many private buyers. Middle class begun to see precious stones a stable asset class they can trust to, because diamonds not only maintain its value, they only even appreciate in the long run. This can be fully applied to white and colored diamonds.

When it comes to investing in diamonds, many people start to contact individually with dealers of gemstones.

But whatever investors’ reasons to invest in diamonds, they rarely educate themselves in any investment strategy. But diamond investing can require more attention than stocks, bonds, and other instruments.

If you are unsure about how to position your investments in diamonds, Diamond Open Market stands ready to help. With our industry experience, we’ll help everybody to become a professional and search for diamonds effectively with insights so that one can make educated decisions on diamond investing.

Diamond Open Market is a decentralized commodity exchange to buy, sell and trade any types of diamonds. Your own fair pricing, zero fees, physical delivery and other features.

Follow our social links:

Facebook

Linkedin

Twitter

Reddit

Telegram channel

Telegram chat

Written by

Diamond Open Market is a decentralized commodity exchange to buy, sell and trade any types of diamonds. Your own fair pricing, zero fees, physical delivery.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade