2020 hit the world very hard. Not just the people but the global economy was affected negatively too. The market crashed and people had to suffer major losses. Since then we have seen a roller coaster ride of ups and downs in the market, but mostly downs. It is in times like these that people have started appreciating the value of physical commodities as investments. More people are now looking towards gold, silver and diamonds as a good and long-term investment. We have often heard about gold and silver investments, but what about diamonds? Do people think it is a good investment? Well, yes and no. As everything else, it has its pros and cons and if the market goes down, everything will go down, but regardless of that risk, if you wish to invest in diamonds, you need to time it in the best way possible.
Why diamonds are good investment?
- As the hardest substance on Earth, you can be sure that it will never break off and lose its value.
- It doesn’t take up much space and so it is always great to own something small that costs so much. You could practically own a million dollar worth of this commodity in a tiny safe.
- Physical commodities do not react very heavily to inflation and you can depend on their value.
- Psychologically, people prefer being able to touch and hold something as opposed to stocks and shares that are non-tangible.
- You can flaunt it. Unlike other investments in stocks, shares, etc., with diamonds, you can literally enjoy this investment while you have it. If it is in the form of jewellery, it does not need to be sitting idle in your safe. You can enjoy it as it makes you feel good about your investment too.
What is the best time to buy diamonds?
The best time undoubtedly is in the month of March. Diamond prices tend to fluctuate. During the engagement and wedding seasons, new jewellery collections are out, sales are in full flow and so naturally the prices tend to rise high. You need to avoid this season, especially if you’re planning to buy lab grown diamond engagement rings UK. The month of March is perfect as it is just after the holidays and the wedding season is yet to come. Since there is no occasion for gifting and wedding shopping isn’t started yet, this is a good time. If you are looking to buy diamonds purely as investment and not for any specific occasion, then March – April is the perfect period for you. This is the time of relaxation for jewellers and diamond merchants too. You will get a good price and by comparing your options, you can find the best deal for yourself.
A few tips to remember
- Do not go shopping without a fixed budget.
- Instead of focussing on big brands, look for variety in smaller stores. You might find better deals and more discounts too. You could the saved money for other important purposes such as home improvement, etc.
- Avoid shopping during the holiday season. The prices tend to be high despite any sort of discount. But, you can avail great deals at Hatton Garden Jewellers during festive season.
- Keep your diamonds as ONE OF THE investments, and not the only one.
- Compare your options and make an informed choice. The prices may vary from store to store.
It is important to remember that no investment is risk-free. The prices and valuation of any asset depends entirely on the market, which itself is governed by several factors. Please do your own research and make informed decisions when it comes to investing large amounts of money.