Investing in diamonds is not a new idea. Diamonds have been sought out and treasured long before our time. They have always represented beauty, honor, and wealth and have even been a symbol of riches and power. Even though you hear less about diamond investment than you may hear of stocks and bonds, diamond investment has existed for years and continues to prevail. The value of a diamond has increased tremendously over time. In fact, from 1990 to 2011, the value of a three-carat diamond increased by 145%. Here are the top 5 reasons that Dallas, TX investors need to invest in the world’s most precious gem.
1. Diamonds Are Durable and Resilient
Diamonds formed underneath the earth’s crust millions of years ago. They are one of the oldest substances still in existence. Diamonds are also known to be unaffected by harsh weather, pollutants, and environmental changes. They are the hardest material on the earth. Diamonds are unchanging and do not lose shine or change in color through time, thus do not depreciate like many other common purchases such as cars, clothes, homes, or technological devices.
2. The Value of a Diamond Is Universal
Diamonds are controlled by a universal price report known as Rapaport Diamond Price report. This price report offers a weekly average price report for each type of diamond. Because of this, the cost of a diamond is not subject to fluctuation based on free market values. This also means that the value of a diamond is equal across all continents and is consistent across the globe. When liquidating diamonds, an investor doesn’t suffer from geographic price differences.
3. Diamonds Continue to Appreciate
Diamonds have intrinsic value much like gold and land. Unlike fashion or other commodities that depreciate as time continues, the value of a diamond consistently increases. During financially stormy times, real estate and stock market prices will drop, while diamonds continue to rise in value.
4. You Can Posses Diamonds Tax-free
As a diamond investor, you can enjoy having a large value of diamonds and avoid paying possession taxes.
5. Diamonds are Scarce and Desired
On average, 80% of the diamonds that are extracted cannot be used in the diamond industry because they lack in quality. The other 20% of extracted diamonds are used to make jewelry. Of that 20%, only 5% of diamonds have a weight greater than one carat. De Beers recently announced that without the discovery of new diamond mines, the world’s supply of diamonds will run out within 40 years time. With that being said, diamonds are a very personal item to most people and represent a life event such as marriages, anniversaries, or other celebrations. These types of diamonds often become heirlooms within families and are rarely sold or traded once owned. Since owners refrain from trading or selling, a shortage of diamonds is found in the trading market. With a limited and decreasing supply and a high demand, diamond costs continue to escalate.
If you are interested in learning more about why you should consider investing in diamonds, look to Diamond Treasures in Dallas, TX.