Why Loose Diamonds as an Investment is the Right Thing to Do?

There's an old and true saying by American icon Will Rogers. When asked about financial investments, (apparently he was a pretty savvy business man as well as being very entertaining) he said, "Buy Land. That's the only thing they are not making more of." The same argument can be made for investing in loose diamonds.

We will start with a little caveat. They are in fact making more land and they are also, in fact making diamonds. I know that they are making land because the island I live on now is twice the size it was when it was first discovered almost five hundred years ago. Thanks to a large Navy presence that wanted it larger, they dredged the ocean floor and filled in the edges of the island. Likewise, they are have been working in laboratories to create synthetic diamonds (Cubic Zirconia is an example of this).They are doing this not because they are looking for a new way to make engagement rings but rather they want to be able to mimic diamonds for scientific experiments and laser use.

In other words, the diamonds that they are manufacturing are not the certified diamonds that provide a wise investment. The diamonds of the highest value are the ones that scientists cannot reproduce. There have been advances in all aspects of mining technology, from how to locate new mines to how best to extract the gems and precious metals from the earth, but these advances have also allowed us to know just how many diamonds are left. I'll give you a hint: Not many.

Every investment is based on supply and demand. The less of a supply and the more of a demand, the higher the price goes. This can get manipulated in any number of ways when dealing with an investment in a non-natural commodity. Just take a look at all the large name IPO's that ends up not making their target. It is hard to judge the ultimate demand for a slip of paper that says you own part of a company.

Loose diamonds have always been in demand, going back almost two hundred millennia. (That's a long time.) It's hard to argue with a track record like that. Unlike a company in the need for more cash, can simply print up new stock to sell off, there are only so many diamonds. So, if you wish to make one of the most stable investments available, purchase certified loose diamonds while you still can.

Ban David is an entrepreneur, world traveler, and freelance writer, specializing in consumer education topics like all tyes of jewelry like loose diamonds and certified diamonds. His background in marketing and sales helps add an energetic and flavorful punch to her writing!