When it comes to building one’s portfolio, many turn to more traditional routes such as investing in stocks. However, this can seem like more of a gamble than an actual financial benefit because of the constant rising and falling of stock prices. A stock may be purchased cheap and skyrocket, but if you don’t cash out at the right moment, the stock can depreciate in value and not do much for you. Some investors choose to go more unique routes that boast bigger payoffs such as antiques, but many fail to realize the real opportunity when they choose a diamond as an investment.
When compared with the changes in value of stocks with that of various types of diamonds, the precious stones performed much more promisingly, according to the Wall Street Journal. The key to investing is that you never want to purchase anything at a price you would not be able to at least meet on the return. In other words, if you invest $10,000 dollars you want to be absolutely sure you can make at least that when you cash in on the investment; of course the actual goal is to make a profit rather than merely break even.
While colorless diamonds have gone through their low points with regards to resale value, they are very resilient as they are key to the jewelry industry as well as some scientific and manufacturing areas. Even when they hit a low-point in price, they tend to bounce back nicely. The Wall Street Journal article reported that between 2003 and 2010, diamonds had a return of 10 percent—compared with just 3.3 percent with global stocks.
Now’s The Time to Buy
Another aspect potential investors need to keep in mind other than when to sell is when to buy. You want to get your investments at a reasonable price (because as previously mentioned you need it to be attainable or a price you can exceed in your return), and that time is now for diamonds. The prices are considered low right now when compared with peaks that have occurred in recent years, but this lull is not expected to last for long. The Wall Street Journal spoke with Martin Rapaport, who is the chairman of New York-based diamond company Rapaport Group, who stated that with the announcement of closings of some major mines in the near future, the prices are expected to increase significantly.
When it comes to protecting your future or simply making smart financial choices, remember that buying a diamond as an investment could work out very favorably, should you act now.
- License: Royalty Free or iStock source: http://office.microsoft.com/en-us/images/results.aspx?qu=diamond&ex=2#ai:MP900410089|
- License: Royalty Free or iStock source: http://office.microsoft.com/en-us/images/results.aspx?qu=diamond&ex=2#ai:MP900401387|
Chuck Stevens is an avid blogger always looking to share his experiences and recommendations. He loves traveling, is a huge football fan and works everyday towards preparing for the zombie-apocalypse. You can follow him on Twitter @chuckstevens12.