While it may sound cliche, diamonds REALLY are a woman’s best friend! Women have a strong emotional attachment to all jewels and gems, but when it comes to diamonds specifically, the topper in the gems hierarchy, their feelings might be at least difficult to explain, if not impossible.
Priceless Gem
Being presented with a diamond ring at an engagement, or at the first child’s birth, or probably at the 25th wedding anniversary is something that matters a lot for a woman. This may not have a monetary value as such, but the intrinsic and emotional value makes it priceless.
The more a relation grows, the higher is the intrinsic value of a diamond ring due to the family bonding. At this stage of relationship, thinking of a diamond ring as an investment doesn’t hold true. You value it because of the associated emotions and not anything else.
Too Slow Appreciation
Whether a diamond is a good investment or not, doesn’t have a solid answer ‘yes’ or ‘no’ did. Different occupants hold different opinions in this regard. Although one thing is for sure that diamonds do increase in price, but how long does it take is actually where one needs to be a bit too patient?
Although there is no doubt in a diamond’s value, it indeed is the most precious gem on earth and does increase in value over time. Moreover, it is least likely to depreciate. You can definitely earn more than what you paid for buying that diamond ring, but for that you must wait for a few years, which doesn’t sound like a good investment, or does it?
Wrong Addition to Investment Portfolio
When a lady (mostly a rich man’s fiance or wife) has enough money to buy a diamond ring, she rarely thinks of the resale value and can’t wait to have one on her finger. The problem begins after the purchase transaction that people usually don’t bother to consider before the purchase decision.
Suppose you are buying a diamond ring today at a certain price, now at the resale the highest that you can get is 60% of the original price you paid for. Another option that jewel shops offer is to sell them your old diamond ring in exchange of another high priced gem, so you give your ring plus a certain amount of money to get one in return.
Know Your Purpose!
The desire for a diamond ring shouldn’t be confused with its investment potential. As an investment, a diamond ring may prove to be a useless idea because it takes a lot of time to appreciate than you can afford to wait.
On the other hand, if it is bought only as a ring then it gives you high intrinsic value because of the finest and trendiest diamond cuts that look so glamorous to any woman that she’ll be more than delighted to have it. In conclusion, diamonds are not a bad investment due to their liquidity, but they offer more emotional value when gifted to someone.