Buy Diamonds or Art for Investment?
Unlike many other valuable commodities, you cannot buy diamonds in the form of shares or an ETF fund or as a conventional commodity. It has to be bought as is.
Because you can pack lots of value in a tiny item, the diamond can be highly valuable in an emergency for someone who has to leave his country or salvage assets in a dire emergency. This makes diamonds more convenient than most works of art. But how does it shape up as an investment?
Not very well, despite smaller size, for a number of reasons. Importantly, quality determination and value require expertise. There is the danger of loss and/or theft. The difference between cost and sales figures can vary greatly because of unestablished markups.
Remember also, diamond supplies have to be controlled for values to be stable on a global level, especially these days when artificial diamonds can be so close to the real thing in appearance and usage. (Remember, always, the basics of general art originality.)
Unlike many other valuable commodities, you cannot buy diamonds in the form of shares or an ETF fund or as a conventional commodity. It has to be bought as is.
Because you can pack lots of value in a tiny item, the diamond can be highly valuable in an emergency for someone who has to leave his country or salvage assets in a dire emergency. This makes diamonds more convenient than most works of art. But how does it shape up as an investment?
Not very well, despite smaller size, for a number of reasons. Importantly, quality determination and value require expertise. There is the danger of loss and/or theft. The difference between cost and sales figures can vary greatly because of unestablished markups.
Remember also, diamond supplies have to be controlled for values to be stable on a global level, especially these days when artificial diamonds can be so close to the real thing in appearance and usage. (Remember, always, the basics of general art originality.)
No comments:
Post a Comment