Strengths and Weaknesses

of Diamond Investment


Historically, diamonds have served as a way to preserve wealth and pass it along to future generations. The idea of using diamonds not justas wealth preservation, but also as a tool for wealth expansion is relatively new. The topic of diamond investment is a controversial one.

You can find numerous articles both for and against diamond investment. At the end of the day, it is up to each individual investor to decide what works best for them. In order to have a better understanding of the concept of investment in diamonds, it is necessary to see the full picture, which includes its strengths and weaknesses.
Historically, diamonds have served as a way to preserve wealth and pass it along to future generations. The idea of using diamonds not justas wealth preservation, but also as a tool for wealth expansion is relatively new. The topic of diamond investment is a controversial one.

STRENGTHS: THE 4PS

The four Cs of diamond grading is widely recognized and are known facts, but we doubt many of you have heard of the 4Ps of diamond investment. The 4Ps of diamond investment are Portability, Privacy, Price Performance, and Preservation of Wealth. While not all the benefits of diamond investment are covered by the 4Ps, they do represent its main qualities.

Portability

One undeniable advantage of diamonds is their size to value ratio. Diamonds have the most concentrated value out of all natural resources and other assets. Several millions of dollars can be the size of one small fancy colored stone. No other asset can stand up to diamonds in that respect. The outcome of a diamond’s relatively small size is that diamonds are extremely portable, one of their greatest advantages. As a result of their extremely concentrated value and portability, diamonds qualify as the best emergency funding. They can be easily transported from any location to any location. All of your wealth can fit in your pocket, become a piece of exquisite jewelry or be stored in a deposit box anywhere in the world.

Portability

One undeniable advantage of diamonds is their size to value ratio. Diamonds have the most concentrated value out of all natural resources and other assets. Several millions of dollars can be the size of one small fancy colored stone. No other asset can stand up to diamonds in that respect. The outcome of a diamond’s relatively small size is that diamonds are extremely portable, one of their greatest advantages. As a result of their extremely concentrated value and portability, diamonds qualify as the best emergency funding. They can be easily transported from any location to any location. All of your wealth can fit in your pocket, become a piece of exquisite jewelry or be stored in a deposit box anywhere in the world.

STRENGTHS: THE 4PS

The four Cs of diamond grading is widely recognized and are known facts, but we doubt many of you have heard of the 4Ps of diamond investment. The 4Ps of diamond investment are Portability, Privacy, Price Performance, and Preservation of Wealth. While not all the benefits of diamond investment are covered by the 4Ps, they do represent its main qualities.

Preservation of Wealth

With the current turmoil of financial markets, wealth preservation can become a more important aspect of investment than high returns. In a world where currencies default, markets crash and “bubbles” burst, to be able to preserve your wealth might become the number one priority. Your wealth preservation is guaranteed because of the aforementioned advantages of diamond investment.

Diamonds have never fallen out of favor; they keep their value, and help to preserve it for the future generations. Diamonds are tangible assets that are largely not influenced by any economic or political changes in the world. The hardest mineral on earth is here to help you keep your wealth undivided and to pass it on.

Liquidity

It is true that diamonds compared to other assets have lower liquidity. They are not as liquid as stocks that are bought and sold in seconds or as gold that has a spot market and is sold at the given price worldwide. Diamonds are much more complex and it requires expert knowledge to liquidate them without undesired losses. Liquidity of an asset is very important for the investment consideration. Diamonds are characterized as having low liquidity and lack fungibility.

An asset’s level of fungibility is determined by its ability to be interchanged with other assets of the same type, which makes the trading and exchange process quicker and easier. Since all diamonds are unique, it’s hard to exchange one for another. There are no identical diamonds existing in the world. Even if two diamonds are matched to have the same value, the stones themselves are individual and sustain their own unique characteristics.

When the goal of an investment is making quick cash, it is important to look at liquidity. Diamonds are suitable for a long-term investment, but the question of liquidating might still arise in the future. As the diamond market expands, the liquidating options also widen. Diamonds can be sold through diamond trading companies, different online trading platforms and through auctions. Explore liquidation options with Astteria.

Requires Experts Guidance

With the current turmoil of financial markets, wealth preservation can become a more important aspect of investment than high returns. In a world where currencies default, markets crash and “bubbles” burst, to be able to preserve your wealth might become the number one priority. Your wealth preservation is guaranteed because of the aforementioned advantages of diamond investment.

Diamonds have never fallen out of favor; they keep their value, and help to preserve it for the future generations. Diamonds are tangible assets that are largely not influenced by any economic or political changes in the world. The hardest mineral on earth is here to help you keep your wealth undivided and to pass it on.