If you ask most women whether they want to invest in gold or diamonds, they will probably say something along the lines of, why not both?
Of course, gold and diamonds are both beautiful and timeless keepsakes, whether you are looking to invest in an asset or simply present a loved one with an unforgettable piece of gorgeous jewelry. However, if you do understand the value of diamonds, gold, a Precious Metals IRA and other related precious metals investments, you will likely be curious about whether or not gold and diamonds are worth your money at all.
You might also be wondering how the two compare. Are diamonds truly a girl’s best friend — or is gold the way to go if you want to see a hefty return on your investment one day?
Here are some important factors to consider when making the decision between investing in gold or diamonds:
Playing It Safe
At least traditionally speaking, gold is typically considered a “safe” asset. Many people believe that, upon purchasing gold, you are promised a long period of inflation and solid return, no matter how the economy changes. Of course, economic journalists have disputed this as a surefire reality.
Although gold is not necessarily a “safe haven” in recessions and periods of financial need, it still is a fairly safe investment, and in fact, gold is even seen as a form of currency, something that simply cannot be said for diamonds.
If you do not fancy yourself as a major risk-taker, sticking with investments such as a gold is a safe and rewarding way to maximize your chances of getting a solid return on your initial investment.
Comparing the Resale Value
Custom engagement rings are something of a trend right now, with many people opting to use their birthstone or other gemstones as a substitution for the traditional diamond. However, if you are serious about viewing your jewelry as a long-term investment, you might want to think twice about swapping out your diamond.
Although gold carries power in terms of inflation and general worth, diamonds can often have a stronger resale value, which makes them easier to sell to a diamond buyer. Be careful when shopping for diamonds. Many people are desperate for the perfect engagement ring and end up wasting money on ridiculous retail markups, which generally will not be recouped in a resale period.
In fact, largely because of this insane mark-up, many diamonds purchased in traditional retail avenues can lose up to half of its retail value. You should not be completely discouraged — a quality diamond that ranks highly on the 4 Cs (colour, cut, carats and clarity) can still hold value after purchasing. If you want to make a wise investment in diamonds, the first step is always to find a fair and honest retailer who will help you understand the true value of your pieces.
Making the Best Choice for You
Ultimately, both diamonds and gold offer unique benefits to investors. For example, both are investments that can be touched and kept on hand — some investors dislike the idea of shares and cryptocurrencies, as these investments ultimately break down into 0’s and 1’s at the end of the day.
Diamonds and gold are also valuable in the sense that they can diversify your portfolio and in unfortunate circumstances, can often be sold in a pinch (although ensuring you have found a respectful, honest and fair buyer is imperative if you want to get a decent deal on your valuables).
Both can also act as valuable investments and timeless pieces of jewelry, something that cannot be said about the stock market. At the end of the day, the choice of where and how to invest your money is up to you.
Is being able to yield a higher resale value a top priority? If so, diamonds are the way to go. If you want a safe investment with a long history of staying valuable even in tough financial periods, you might want to go for gold. Of course, however, this choice does beg the question: if you have a taste for the finer things in life and find the beauty of both gold and diamonds to be valuable in its own right, why not both?
