Gold is considered the safest investment option since time immemorial. Precious metals have always been considered auspicious and takes many forms. It is invested in the form of jewellery or electronic gold. The question that arises here is, are diamonds considered an investment option? Online diamond jewellery stores are offering affordable gold and diamond jewellery options to buyers to expand their investment portfolio. Remember every work anniversary you are close to retirement and https://www.forbes.com/sites/theyec/2018/03/06/top-personal-finance-tips-you-should-make-a-priority-on-your-work-anniversary/#32626c1c181f provides useful information on personal finance tips.
Importance of gold in Indian culture: India is the largest consumer of gold in the world. Gold is synonymous with wealth and nothing can go wrong with it. Gold is part of our culture and this is not just seen as a precious metal but as an auspicious one. Gold reaches to all strata of the society and is the most desired among the rich and the poor. It is used in our daily lives and has become an integral part of our lives. All these are the right reasons to clamour for the yellow metal. Over a period of time, gold has stood the test of time making it a wiser investment option.
Even during economic dips, gold has sustained its numbers. It remains unaffected during political, economic or social declines. Gold is sold in the market to offset the losses during times of recession. Gold is considered a popular option and can be transacted transparently in open markets. For over 100 years, the price of gold by syndicates and cartels through some clever marketing strategies. Gold can be liquidated into cash easily. Since it can be divided into smaller pieces and sold as per convenience of the seller it is considered the most versatile investment option.
All that glitters is not a diamond: Gold holds its value due to the fact that it cannot be artificially created, the same is not true about diamonds. These glittering stones have a put on value and are not considered an investment. It has aesthetic appeal and is definitely owner’s delight. Unlike gold, diamonds are a depreciating asset. It is similar to a car purchase where it is used for consumption and not investment. Diamonds cannot be liquidated like gold and can neither be fungible. Diamonds come in different size, cut, clarity, colour and shape. It is not possible to collect diamonds of similar characteristics.
Using modern technology diamonds can be synthesized and it is impossible to differentiate natural and synthetic diamonds. The 4Cs can be incorporated in synthetic diamonds making it hard to tell one from another. Today technology is so advanced that synthetic diamonds are made more perfect than natural diamonds. It is tough to differentiate between natural and artificial diamonds.
Since it is cheaper to make synthetic diamonds, it is not considered to be an attractive investment option. The cost of the diamond depends on how it is synthesized. The supply and price is solely the discretion of the manufacturer. It is similar to how the automobile companies control the cars manufactured and their price.