Upcoming Passover Closing Sunday, April 13th - Monday, April 21th
Upcoming Passover Closing
Leibish & Co. will be closed during Passover - Sunday, April 13th - Monday, April 21th. Paid orders received by phone calls and e-mails will be answered during the Holiday, however correspondence may slightly be delayed. We apologize for the inconvenience and appreciate your patience.
CLOSE

Which is the Better Investment: Gold or Diamonds – Diamonds vs. Gold

One thing the most recent recession has taught us is that while stocks and bonds can be the door that leads to one’s financial security, it can also be the door that suddenly slams shut, locking all finances away for good. The instability of the market has lead investors to search elsewhere for wise and worthwhile opportunities. Precious metals and stones such as gold and colored diamonds are two of the hottest options available for potential investors. Both of these commodities have proven successful and safe as investments over the past forty years. Here is a look at why these items have done so well despite the poor economy and speculations regarding what the future may have in store for them in terms of their value.

 

 0.53ct, Fancy Red, VS1, Argyle DiamondGold Bar


Gold and Colored Diamonds Through History

 

Gold has been valuable and used as a form of currency for centuries. Its beauty as well as unique characteristics have been acknowledged and appreciated by men and women alike, whether acquired for the purpose of an investment or to be used as jewelry. However, when purchasing enough Gold to invest, you don’t actually take hold of the goods. Rather, you acquire ownership on paper. In the time of need, whether an emergency or natural disaster, most prefer to actually have their investment in their own possession. Furthermore, Gold has fluctuated up and down quite drastically over the past ten years, but overall moved in the right direction. It most defiantly is its own commodity, but it is directly connected to the world economy. The fact that these precious metals are stored by banks, it is impossible to know what is going to happen with your investment.

 

Unlike gold, colored diamonds have only begun to grab attention of the investment world recently, at the beginning of the 21st century. Nevertheless, colored diamonds do have a rich history, as they have been worn and purchased by royalty and the higher classes for some time. Though they have always been rare, colored diamonds are even rarer today as a result of their growing popularity and high demand. The sources for colored diamonds, particularly certain colors, are extremely limited. Between the low supply and high demand, the prices are forever soaring. This is precisely what makes this commodity and excellent investment, and it is only one of the many appealing reasons.

 

White Diamonds vs. Colored Diamonds

 

White diamonds differ from colored diamonds in a number of ways, and not just in color. The consumer, alone, is the decisive component in a white diamond’s value while a colored stone’s rarity and potential high bids at auction houses are what ultimately determine colored diamond prices. Extremely rare diamond such as red and blue diamonds most certainly demand high prices, but even “more common” colored diamonds such as brown and yellow diamonds account for less than 0.1% carats of white diamonds that are found. Prices at auction houses are constantly increasing, so much so that natural fancy colored diamonds from the year 2007 to the year 2012 broke a total of thirteen price records. The solid rate at which colored diamond prices are rising legitimately removes colored diamonds from the “risky investment” category that many are distancing themselves from in light of the collapsed economy.

 

Easy to Move, Easy to Store

 

Yet another advantage to investing in colored diamonds as opposed to gold for instance, is its weight and ability to be moved with great ease. If one chooses to invest in a physical item and not a company’s stocks, there is quite a range of options to choose from. However, if one would like that object to be easily protected and moved, the choices taper significantly. Unlike, say, a valuable painting, a colored diamond can be transported easily. The amount of gold equal to a valuable colored diamond cannot be moved quite so easily. Large amounts of gold are usually not even stored on an owner’s property, but rather, in a bank.  A colored diamond can be stored or hidden in one’s home, safe, or even worn on their finger.

 

Liquidating Colored Diamonds

 

One of the most important aspects of an investment is how easy it is to liquidate. Gold is fairly easy to liquidate, thanks to modern technology. It can be sold and money transferred with a click of a mouse. Though selling a colored diamond is slightly more complex than that process, a rare and high quality colored diamond is worth the wait. Similar to a piece of art, or sought after piece of land, the sale may take time, but the high rewards are much appreciated.

 

 Fancy Color Diamonds

Flaunt your Diamond

 

The best part about acquiring a colored diamond as an investment should be quite obvious. A colored diamond is, after all a colored diamond! It can be worn in a variety of ways and displayed before everyone. Of course colored diamonds should be insured, but that is the case with any valuable item. The difference is, there is nothing exciting to be done with piles of gold. Yet a stunning pink diamond pendant can adorn you every day while ensuring that not too far down the line it will be worth much more than its cost.

 3.30 Carat, Fancy Orangy Pink Diamond Ring

3.30 Carat, Fancy Orangy Pink Diamond Ring

 

While there is not much to know about gold, it is either certified or not, there is quite a lot to learn about colored diamonds. This should not steer you away from the fantastic investment opportunity that a colored diamond offers you. This, along with the other aspects of a colored diamond, is just part of bringing a remarkable natural specimen into your belongings that is much more than a boring asset, but an intriguing stone that has many facets, in more ways than one. Colored diamonds are not only long term alternative investment options but they are currently the world’s strongest long term alternative investment options that also provide you with beauty, fascination, along with many other advantages.

 

Contributor: Benji Margolese

Related diamond articles

10 Reasons Why Colored Diamonds are Considered a Wise Investment

Investment bankers, financial institutions, and business analysts...

Read More

Why Invest in Diamonds and More FAQ About Diamond Investment

Contrary to colorless stones as a result of how unique each color...

Read More

5 Tips on How to Invest in Fancy Color Diamonds - Color Diamond Investments

Investing in colored diamonds is quite different from your everyday...

Read More

Investment Infographics - Investing in Colored Diamonds

Leibish & Co. proudly presents the first of its kind, a Color...

Read More
Video Gallery