The idea of investing is that you buy into a product or asset and then sell it on for profit once the value is at a greater price compared to the initial amount that you originally paid. As such, there are a number of different options that you can choose. Some of the more common include gold, land, property, and metals. Diamonds however are a very popular form of investment and the interest in this asset has increased around the globe significantly in the last ten years.

The popularity of diamonds

Diamonds are popular for a number of reasons, mainly because there are more people on the planet who now have the funds available to invest, and coloured diamonds especially are even harder to get hold of, making their value skyrocket. Why you might ask? Well, because some of the largest diamond mines have closed, meaning there is a low supply of this asset. Coupled with the increase in demand, this has resulted in the value of diamonds gaining steady momentum. For investors, this is the Holy Grail, to find a commodity that steadily rises. Therefore, diamonds offer a stable form of investment when compared to alternative options. How then, does diamond investment compare with investment in gold?

The value of diamonds

Diamond investment trends have gone up as the value of diamonds has also increased. In 1980, diamonds were valued, on average, at $10,500 which translates to around £6,600 in UK currency. In 2011, diamonds were valued, again on average, at $29,000 (£18,000) nearly triple the amount. If you can picture this on a graph, the line (when comparing price in relation to year) shows a steady and similar incline from the 1960s right through to the year 2000. After this point, the incline increases dramatically and shows a quicker rise in a shorter amount of time. There are some minor drops, although over an 11 year period the value has increased exponentially. As a result of this rise, there is a greater amount of interest in diamonds as a commodity.

What about gold?

Gold on the other hand, has seen a different set of trend results when comparing its price throughout the years. Although gold has also increased during the last ten year period, the rise has not been as steep. The trend features more drops and rises when shown on a graph, and diamond investment shows a steady rise until a sharper improvement in the last ten years. This firstly indicates that gold is not as stable as diamond investment, because although it has improved, it’s very hard to predict if a sharp rise will then produce a greater decrease soon after. This means that when you own gold, you need to sell it on very quickly if you notice a dramatic improvement in the market before the return on investment could potentially become relatively low.

As diamonds never really lose their value, they make for a sensible option when you are looking to invest in a commodity. In addition, you can also sell individual cuts of any diamond that you own, and this shouldn’t have too much of an effect on the remaining section that you have left.

The future trends for any form of investment can be difficult to accurately predict, however given the sharp increase in the value of diamonds that we have seen over a ten year period, they are currently worth investing in. At present, other alternatives do not give you as much back financially and so if you decide that you want to invest, diamonds should be your number one priority.

Vincent Rogers is a freelance writer who writes for a number of UK businesses. For advice about Diamond Investment Trends, he recommends speaking to Stone House Global Markets.

Vincent Rogers is a freelance writer who writes for a number of UK businesses. For advice about http://www.stonehouseglobalmarkets.com/about-us.shtml Diamond Investment Trends, he recommends speaking to Stone House Global Markets.

Author Bio: Vincent Rogers is a freelance writer who writes for a number of UK businesses. For advice about Diamond Investment Trends, he recommends speaking to Stone House Global Markets.

Category: Finances
Keywords: diamonds, investment in diamonds, diamond investment, investment diamonds