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Gold is the ultimate gilt investment or rather was, but diamonds are forever. There are experts for both sides of the argument. Perhaps gold is not a commodity but rather a currency. Perhaps diamonds are not a commodity but works of art. However they both have one common aspect; they are not assets with a capital value and an annual dividend like stocks and shares, one can only buy them and sell later at a profit. To make a decision, historical fluctuations of prices over specific time periods will have to be examined.
The Gold Story
As a bought commodity, it is not a tangible investment, proof of ownership is on paper and the metal is stored in some bank safe at any location in the world. The advantage of this is that buying and selling is a simple transaction and can be done easily but the owner will never really have the pleasure of viewing his purchase.
The price itself is based on several factors, firstly as a commodity it is at the mercy of the whims of hoarders who will play the speculative game most effectively. Secondly its importance as a basis to several currencies in the world and governments are interested in maintaining prices both against sharp upward and downward trends. Conversely when important currencies experience sudden drops, very often gold will step in to offset this, creating a serious disruption to its steadiness that might revert negatively at any moment. Thirdly because of its historical importance and worldwide significance, there are very many players in the game and the predictability becomes an almost impossibility. Lastly it is a metal that has an industrial use, there is a cost to get it out of the ground and as such is not an investment item free of any other considerations.
There is no doubt that in long term, gold has held its value and shown increase against other currencies. It is however very difficult to use as a short time investment as it is very often necessary to have the fluidity and flexibility to make quick purchases and sales in the world of investments.
Diamonds Are Forever or Whenever
This King of the gemstone world has always been a treasured item apart from the romance and love that cannot be disassociated from it, the diamond has always held its value. The proof of ownership is in one's pocket, it can always be held securely but even then it is in your own bank safe deposit. Buying and selling becomes easier all the time and at present transactions can be comfortably and securely performed in the offices of reputable diamond dealers.
Apart from jewelry there are no other usages for gem quality diamonds other than for private collectors and investors and therefore increases are easily predictable, follow regular patterns and are not subject to sudden speculative whims.
As an item, each diamond is unique, there are no two diamonds in the world the same, and each individual one has his own market value based on the factors we have mentioned above. The world scene does not significantly influence my investment however large or small.
Demand is on the increase and supply is diminishing which only means one thing; even though different types of diamonds have different trends, the excitement of the colored diamond investment world have shown a 50% increase in just the last five years.
Apart from the world of art, your investment can be adorned and lavished on the person you so desire during which time the value simply grow.
The reader can decide him/her self which they would rather prefer.