Is the diamonds an investment ?
- Thread starter 4graners
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Diamonds are an investment in pleasure. You might consider spending money on a fine bottle of wine a similar investment, but one that only keeps its value until you open the bottle and drink it. Diamonds don't get used up quite so fast as a fine wine, but they do last a long time like a bottle of wine could last if you cherish it on the shelf.
People invest in 1960's muscle cars. Now, if they really drive them, the value will decrease. Only if they store it very properly will it possibly hold its value or increase. It is so tempting to drive those great cars that many an "investment" in them becomes one of pleasure rather than financial.
An investment is not guaranteed to increase in value. It is characterized by durability over time, more than absolute dollar performance. Diamond fits that description, but it is not likely to appreciate in some way that you will ever make money with it.
Does this explain how diamond is an investment? I think it might.
People invest in 1960's muscle cars. Now, if they really drive them, the value will decrease. Only if they store it very properly will it possibly hold its value or increase. It is so tempting to drive those great cars that many an "investment" in them becomes one of pleasure rather than financial.
An investment is not guaranteed to increase in value. It is characterized by durability over time, more than absolute dollar performance. Diamond fits that description, but it is not likely to appreciate in some way that you will ever make money with it.
Does this explain how diamond is an investment? I think it might.
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