Economics of Diamonds, Part 3
Since I became a business analyst at a diamond dealer, I have not only learned about the diamond market but also came across some misconceptions which try to convince people that diamonds are not a good investment.
Over the next few blog posts, I will reveal what is fact and what is fiction about diamonds as an investment.
1). “Diamonds are not a good investment because you cannot sell diamonds for a return.”
This statement assumes that you bought the diamond at an overly inflated price and when it comes to selling it, you get far less than what you initially paid for it. In that case, you wouldn’t get a good return, if any, no matter if you sell it to the diamond trade, in auctions or through private people.
Companies like ECN Investments, sell investment diamonds at almost wholesale prices which negates the problem of over-inflation.