Tarun, of Thai Native Gems, and I have been friends since high school and while I give him a lot of stick, I do respect his viewpoint when it comes to gems and diamonds, despite the fact I’ll never understand why women love it. He just published an article today talking about diamonds as an investment which I found interesting. Finally if you have a look @ the rest of his site you’ll learn far more and (promotion alert!) if you actually want to buy a gem/diamond Tarun would be happy to accomodate your needs.
Diamonds as an Investment
A very common question we get asked from our client’s is, “Are Diamonds a good investment?” As I do have some financial background, graduating with a finance degree & working in an investment bank before re-entering back to my family business, I do have a slight advantage in knowing what a good investment means.
By definition an investment (in my words) is an asset which appreciates over time and therefore allows the buyer to make some money. It should beat inflation or normal deposit interest rates – which are virtually zero today because of non-stop crisis propping up in the Western World for the last 5 years. It is also important that the asset is in demand, liquid and market price is transparent for it to be a successful investment.
So, how do diamonds fare as an asset class when we compare to above definition?