Diamonds are one of the safest investments that one can make, simply because of the fact that a good diamond never decreases in value. A growing trend in the gloabal market is an increasing investment in diamonds by investors. After gold and silver, diamond is fast increasing as a recession-proof investment. There are several good reasons that make diamond untouchable by recession. Let's take a look at each of them.

Diamonds are a highly regarded luxury product. They are widely used in engagement or wedding rings and diamond studded jewelry is in fashion at all times of the year. This ensures that the demand for diamonds is constant throughout the year. The hype around this precious stone is quite high enough to make an evergreen presence in the minds of all classes of people.

Another important factor to consider is the fact that the members of the higher classes are the largest consumers of diamonds. These classes are not as much affected by recession and the demand for diamonds is not hampered much even in times of recession. Another factor to be considered is that diamonds have a steady global demand and even though a particular country might have a decrease in demand for this precious metal, the overall worldwide demand remains more or less the same. This ensures that the value of diamond is even more unlikely to reduce.

diamond copy

Social conditions and positive depictions in the mass media like television and films have greatly increased the popularity of diamonds over the last two decades. This increase in popularity has naturally led to an increase in value of diamonds since it is not an abundantly available stone. Thus, over the past 15-20 years the value of diamonds has increased greatly. Compare this with the behaviour of the stock market, which has behaved extremely erratically and has caused great losses at many occassions, diamonds can be said to be quite a safe venture.

Another major factor that plays a vital role in keeping the value of diamonds up is the use of diamonds in industries. The industrial demand for diamonds has a far greater influence on its value since 80% of the total quantity of diamonds mined is used for industrial purposes. For example, a large number of diamonds are required in the construction of lasers and surgical equipments. Diamonds are also an important part of many drilling equipments. Due to the steady economic development of a large number of countries like India and China, the demand for such products is on the rise and consequently, the demand for diamonds is also on the rise.

A matter also to be considered is the fact that China, the second largest economy in the world, is stocking a lot of investment grade diamonds (2 to 20 carats) and this has caused in a considerable increase in the value of the stone. Naturally, when an economic giant like China considers diamonds as a very good investment, it is bound to be taken notice of by the rest of thw world and many investors might follow suit soon.

Going by this trend, an increasing number of investors are contemplating about investing in diamonds. It would be wiser to invest immediately while the prices are comparatively lower as in the future, due to the heavy investment, the prices might go higher and it is highly unlikely that the value of the diamond as an inestment will ever come down.


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