Diversify Your Investment Portfolio with Diamonds
Monday, March 28, 2016, 6:00 AM | Leave Comment
For decades diamonds have been the symbol of love and marriage. Today, they are worn by both men and women and have become an investment for those who purchase them.
Diamonds rose to fame in the 20th century when De Beers ran a very successful marketing campaign. Since then, this expensive gemstone has captured the interest of the masses and is well sought after.
With the advent of the internet and online sales, diamonds have become even more accessible. You can simply browse an online jewelry store and purchase the piece that you are interested in.
These include diamond earrings, necklaces, bracelets, engagement rings and more. They come in a variety of cuts and sizes ensuring that anyone looking to purchase them can do so.
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Investing in Diamonds
Today the equity markets have become very volatile. Fixed-income investment vehicles are giving a negligible yield making them less attractive as well. The wealthy have taken note of this and have turned their attention to hard assets.
They are now investing in collectible cars, art and jewelry among others.
Diamonds have become one of those investment options. You will do wisely to take note of what those who have preserved their wealth over time have done and are now doing again.
In the past, diamonds were not considered a pure investment and there were several reasons for this:
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Price transparency – There was no transparency where the price of diamonds was concerned.
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Lack of a liquid trading market
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Uniform standards, where the quality of the stones was concerned, were not established
Today diamond wholesalers are selling diamonds online at a great price. This is something that you can take advantage of and make an investment for the future.
Investing in hard assets means that in tough times you can re-sell your diamonds at a later date and they will have gained value over time.
Wealth-X a research firm, said some time back that since the year 2005 rough diamonds had risen in price by almost 1/3. They further said that the price of rough diamonds would rise another 20% by the year 2017. The price of diamonds is rising, not falling.
By purchasing your diamonds wholesale, you will be getting them at a much better price than you would have had you bought them from a reseller selling out of a conventional jewelry store.
This means that your profit margins, whenever you decide to cash in your hard asset, will be higher than that of a person who purchased their diamonds from a conventional jewelry store.
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Diamonds are Everybody’s Best Friend
One other thing that the wealthy do with their jewelry is to pass on the wealth from one generation to another. By bequeathing their hard assets to the next generation they ensure that wealth is passed down. It is then the responsibility of the next generation to add to it. At the right time, they simply cash in their hard assets and invest in the vehicle that will bring the highest returns.
Diamonds are not just a girl’s best friend; they are everybody’s best friend!
Throw us a like at Facebook.com/doable.financeAuthor BIO
Rose Stone has been in the business of selling top quality jewelry online. She encourages people to diversify their investment portfolio by purchasing diamonds wholesale online from certified diamond wholesalers. Hard assets are non-volatile and will stabilize your investment portfolio.
