As we have mentioned in our previous articles that even in 2021 some investors whether retail or big, prefer gold as the safest and best investment which is of course their opinion 100% true or not we can’t really make a statement on that but today we have discussed in this article that which is better Gold or Diamonds in terms of investments or other factors as well.
Both are expected to give good returns and safe investments but there are lot of questions which comes into our brain before putting in our hard earned money. Those questions are answered in the easiest way possible below.
What kind of investment gold or diamonds are?
Investing in metals, livestock, energy, etc comes under the commodity investments. Commodity investments simply means purchasing physical things as an investments with a plan to sell them later for financial gain. Investing in commodities involves various factors to be considered like economic conditions and development, etc. Gold investments are usually decided on the basis of currency trends and rates.
Diamonds Vs Gold as an investment
If you are considering it as an investment then there are a lot of factors which come into the play and we can not simply state one answer whether gold is better or diamonds are. So go through the pros and cons and points mentioned below and decide for your particular situation that which would be a better option. Before talking about the difference we have shared some factors to consider while buying gold or Diamonds.
Consider these factors while investing in Diamonds
- Ofcourse the very first point would be the quality of the diamond, make sure to get it from a trusted and well name brand and with all the checks needed to ensure the cut, quality and carat.
- The trends of type of diamonds keeps on changing so it would be a better option to diversify your investment in diamonds in to multiple types which increases the probability of higher resale value and hence profit.
- Make sure to have the required certification to prove the credibility of the quality of your diamonds.
Factors to consider before investing in Gold
- Even though we have digital gold buying services and paper gold buying options but still people prefer to go for the hard physical gold which may be makes people feel good about their investment and it’s anyways safer but it involves other responsibilities altogether.
- Purchasing it from a trusted source is also applicable here as it is a precious metal and the quality should be highest.
Final Result Which has more value Diamond or Gold?
We need to understand a few things before jumping on to the conclusion. First of all there is no fixed price of both the gold and diamonds and the prices depends on various market factors. Gold is always considered a safe investment because of the history backing its value.
Diamonds can also become a good investment if not the safest as it can provide higher resale value in some cases.
Pros and Cons of Gold investments
There are pros and cons of both the gold and diamond investments, in fact there are pros and cons of almost everything. Here we have presented the pros and cons of both Gold and Diamonds which you can go through and take your final decision whether Gold is the investment for you or Diamonds.
Gold is not directly impacted from market conditions and because of this factor it is the safest form of investment. Gold was used as currency in the past and it has a history backing its growth and value. Gold has proven to be safe from inflation in the past and it has sustained its value for a good period of time. Reselling gold is easier hence it improves the liquidity.
Storing hard physical gold safely can cost some extra money and efforts otherwise it is always a risk.
Pros and Cons of Diamond investments
Diamond might not be the safest option but it can be a great option to invest in for multiple reasons. Some of the reasons are Diamonds are easy to carry and store safely because of the small size. Durability is one other factor which gives an advantage to diamonds. We have all read it in the school that diamonds are the hardest natural substance on this planet so there’s no chance of wear and tear or something like that.
Diamonds are much more beautiful than gold which is a whole different factor which includes emotions, etc but we can’t deny the fact even if we are just considering the investment point of view. Diamonds also can be safe from inflation just like gold hence the safety of investment can also be achieved with diamonds.
We have covered the major benefits and disadvantages of both and all other crucial factors which are involved in decision making whether you should be investing in diamonds or Gold. One big factor with gold is that it is highly liquid and you can even get money through gold loan in a few minutes without even loosing your gold which is not yet possible with diamonds. Gold is safer and has more trustable history so as an investment purpose I personally would prefer gold if I go for commodities and diamonds can be acquired for asthetical purposes.