Diamonds of distinction: Why natural diamonds remain enduring jewellery (and financial) investments

Introduction

Diamonds have captured hearts with their brilliance and timeless beauty for generations. However, their appeal transcends appearances. Diamonds have also proven to be a wise financial investment and an adored jewellery foundation.??

A Marvel of Geology

Unlike fads or inexpensive jewellery,? diamonds are investments in beauty and status that increase in value over time. However, diamonds are extremely rare gemstones, with the majority of gem-quality diamonds only found in a few sites globally. Diamonds are generated under high pressure and heat over millions of years.?

They are more valuable because of their limited supply because scarcity is a key investment concept. As new resources run out and mines develop, these gems are getting tougher to find. Diamonds' inherent value is universally acknowledged, demonstrating their rarity.

Data

For individuals with a long-term perspective, diamonds provide a sparkle that lasts for decades.?

The Rapaport Diamond Report states that during the last ten years, the average yearly appreciation rate of high-quality diamonds has been between three and four percent.?

Diamonds are valuable because they are rare, as stated by the Gemological Institute of America (GIA) and De Beers, and because demand for them is growing worldwide, especially in emerging countries.?

Their investment potential is further demonstrated by record auction prices, like the "Pink Star" diamond sold for INR 594 crores.

Further options for portfolio diversification are provided by diamond investment funds and indexes, such those from the Diamond Investment & Intelligence Center. These elements confirm diamonds' standing as a worthwhile long-term investment, in addition to their function as a buffer against economic volatility.

Lab-grown diamonds are less expensive, but their worth is based on how quickly technology advances. The prices of lab-grown diamonds have significantly dropped as a result of over supply brought on by mass manufacture. For instance, in 2016 the price of a superior 1-carat lab-grown diamond was about 10% lower than that of a real diamond. Depending on the manufacturer, this disparity might have increased to 80% by the end of 2022.

Real is rare

Because they are so rare, large? stones have historically brought much higher prices.Larger stones become even more valuable as production declines and mines close, adding to their timeless appeal. There is more value to these stunning diamonds than just cash.?

As they are passed down through the years, they can accumulate even more value and become priceless family heirlooms that are associated with memorable moments. Diamonds are always in style, despite shifting fashion trends. They serve as a constant source of inspiration for the wonders of Earth and a method to leave something unique for future generations that value beauty and timeless beauty.