DIAMONDS: WHY THEY’RE GOOD INVESTMENT ASSETS
September 09, 2021
Whenever the topic of diamonds is brought up, most people tend to think that they’re only good for one thing: jewellery. And really, this is understandable: diamonds are one of the most popular gemstones for jewellery in Singapore and all around the world. However, while it’s true that diamonds are good for jewellery, creating diamond rings aren’t the only things they’re good for. In fact, diamond experts say that they can also hold their ground as investment assets.
Here, the jewellers of Vella Diamonds discuss why diamonds are good investments.
They’re Safe Investments
According to diamond experts, diamonds are said to be good assets to invest in because they’re considered to be safe investments as they have a relatively stable value that’s constantly on the rise. This is due to the fact that since diamond mines can eventually run dry, their price is set to increase naturally due to the gradual decrease in diamond production, meaning that you can eventually sell your diamonds at an increased price compared to when you bought it.
They’re Tangible, Holder Assets
Diamonds are only put in the market in their physical form, meaning that they’re tangible assets that you can always keep with you while being worth so much money at the same time. Apart from that, they’re also Holder Assets, meaning that are very easy to keep and carry and can be sold anywhere thanks to their Certificate of Free Circulation. This makes it a better investment compared to…say…gold where its quantity that equates to value requires more storage space and weight.
Diamonds are Protected Against Risks Related to Political and Economic Crises
Okay, let’s admit it; economic and political crises are events that can definitely happen in our lifetime and believe it or not, if you want to avoid the risks related to them, then one thing you should invest in are diamonds. This is because, whether you simply have diamond stones or you have a few diamond rings, you can rest assured that it’s a solid investment because they’re protected against the risks that come with such crises as they definitely offer the certainty of immediate sale. Compared to bonds and shares, which can be rendered useless by an Economic crash, or real estate assets, which can become difficult to operate in such times, diamonds are a better investment thanks to the fact that you can sell them anywhere immediately.
They Aren’t Subject to Tax
Taxes are often a necessary but difficult thing to get into. In fact, almost everything we buy and even leave behind for our families nowadays has a tax imposed on them. But luckily enough, if you invest in diamonds, taxes aren’t something that you’ll have to worry about as there’s usually no taxation to their added value. If you intend to pass on your diamonds to your next of kin, on the other hand, they’re also not subject to legal succession taxes.
Diamonds Are Ethical Investments
On the other hand, whether you’re in Singapore or any other part of the world, diamonds are often ethical investments. This is because most diamond sellers will offer only “conflict free” diamonds, meaning that they’re purchased only from lawful and reputable sources who are authorized to sell the diamonds in the first place, which in turn allows both sellers and buyers to remain in full compliance with the UN resolutions and remain uninvolved in financing war conflicts at the same time.
Mistakes to Avoid When Investing in Diamonds
Of course, when you’re investing in diamonds, it’s highly recommended that you remain on guard all the time as you might make a few mistakes that can be costly if you aren’t careful in your purchase and investment. For instance, one mistake that you can make when investing in diamonds is keeping the mantra “buy low, sell high” close to your chest. While in any other investment, this mantra would be a good thing to keep in mind, buying low is significantly more difficult when it comes to diamonds and can result in you making the mistake of paying more than you should be paying. This is because there are plenty of additional costs involved in diamond investments, such as insurance.
Retailer mark-ups can also play a huge role in this so if you want to pay less when investing in diamonds, consider buying from online stores of reputable retailers. On the other hand, there’s also the taxes involved as failing to buy from a non-VAT area, you can easily lose 20% of your investment in one fell swoop.
On the other hand, when you’re investing in diamonds, you should also avoid making the mistake of expecting too much immediately. Remember; diamond investment isn’t a get-rich-quick scheme and you’ll actually have to wait a few years for your diamonds to increase in value. With that in mind, make it a point to buy a diamond that you know you’ll love. That way, you can enjoy it while you wait and you won’t be disappointed if it doesn’t earn you as much as you had hoped for in the long run.
With the aforementioned reasons, it’s not hard to see why diamonds are incredibly good assets for anyone to invest in. And if you plan to invest in diamond rings, make sure that you’re getting a quality piece of jewellery by turning to Vella Diamonds, one of Singapore’s leading experts when it comes to bespoke jewellery. With the years of experience that they’ve accumulated in the business, they’re more than qualified to help you find the best diamonds or diamond ring to invest in. You may visit their respective websites to set an appointment, learn more about diamonds, or see the wide range of engagement and wedding rings that they can offer you!