Precious metal and gemstone investments are both excellent ways to guard yourself against inflation, or the economic fluctuations, as they vary less in price than fickle paper currencies. Despite both gold and diamonds being wise investment strategies and seemingly similar types of investments, they vary greatly based on your goals, what you want to gain, how long you want to wait and the amount of research, resources, and space you are willing to use.

As with any investment, you should do your homework first to gain as much information as you can and make the best decision to meet your personal goals. Here are our top hints, advantages, and differences between gold and diamond investment to help you along your way!

Gold Investment Advantages: The Test of Time

Gold has many advantages and has proven itself time and time again as a stable investment in the past thousand years. It is seen as a sign of wealth and luck in numerous cultures, but additionally, its value tends to stay stable over short and long periods of time. Often its value increases during times of economic upheaval. In fact, in the past, we’ve seen gold’s value rise even as the stock markets plummet, which makes it ideal for investors looking for more security than what stocks or paper money can provide.

If you are looking for an investment you can liquidate quickly when needed, wanted, or when prices are highest, then gold is a great option, as it is highly liquid. Essentially, gold is easier to sell than diamonds, there are more locations where it can be sold and it takes much less inspection, as gold is sold by weight. Additionally, gold is money, which eases the minds of many investors looking for something stable and established.

Benefits of Diamond Investment: Concentrated Wealth

Diamonds may not have the same consistency that gold has shown, but investment diamonds are rarer than gold, with only a quarter of the diamonds mined yearly being of fine gem quality. Additionally, diamonds can have different levels of quality and therefore price, meaning it isn’t all about the size, but instead the 4 C’s (color, cut, clarity and carat). This can be both an advantage and a disadvantage depending on what your goals are.

Diamond investment takes more specialized knowledge than gold, but can also offer larger payouts. A high-quality diamond of only around 2.5 grams could have the same value as over 220 pounds of gold bullions or coins! So, though gold might be more liquid, diamonds are more portable and the most concentrated form of wealth in the world.

Differences Between Precious Metal and Gemstone Investment

Though both gold and diamonds are scarce commodities, therefore driving up their prices, there are vast differences in their availability and quality which could be a deciding factor in which asset you choose to place your trust, and money, in.

Gold is more straightforward, as an ounce of gold is an ounce of gold and will be sold as such (unless it is certified as antique or rare) whereas two diamonds of the same weight could vastly vary in price and fit into a hundred different categories.

Both diamonds and gold are inflation hedges, and though more research has been given to the stability and price of gold over diamonds, both industries are independent of financial markets and have proven to be much more constant and predictable than paper currencies and stocks.

Diamonds or Gold? Ultimately, You Decide!

In the end, both diamonds and gold give you more security than paper money, and both can be seen as inflation hedges, however, they are very different forms of investment. Diamonds are longer-term, more mobile investments, but require expert guidance, while gold is more easily able to be liquidated and can be bought and sold without as much research or time invested.

In the end, the choice is yours. If you are looking to diversify, or invest in one or neither, the decision should be unique to your goals and financial situation.

Need additional assistance or have fine gem and precious metal questions? We can help! Contact us here, or leave a comment letting us know your reasons for gold, diamonds or both!