Buying a diamond has been considered a status symbol across cultures for hundreds of years. Likewise, gold jewellery is something that has been associated with wealth for even longer.
Now, as the demand for diamonds appears to be increasing in the United States and China, it could be the right time to invest in these precious stones. However, the question bears asking: is diamond or gold jewellery the better investment for long term returns?
Oftentimes, a piece of jewellery that purports to be made of gold is not, in fact, pure gold. This is because gold is simply too soft, so yellow gold engagement and wedding rings will often contain somewhere around 18 karats of gold, with 24 karats representing pure gold.
In turn, there are many different types of gold used in jewellery, particularly in gold rings. Like yellow gold, white gold and platinum are popular precious metal choices for rings. Surprisingly enough, white gold can actually be as pure a yellow gold, meaning that it comes in 18k gold variations.
A platinum ring, on the other hand, comes with none of the gold value (though platinum itself is a valuable metal). Instead, platinum rings gain most of their austere due to the fact that they’re commonly used in diamond engagement rings.
Like gold, the quality of diamonds play a huge role in their worth. Though there’s no such thing as an “impure” diamond in the sense that you cannot alloy a diamond, there are quite a few forms of imperfection that can drag down a diamond’s worth. Clarity and color are just two of the factors involved in overall quality.
However, assuming that a piece of jewellery is made of 18k gold, and another piece of jewellery contains a nearly perfect diamond, which one will fetch a higher price? That’s still a complicated question.
Like any other commodity, the price that gold and diamonds will fetch depends almost entirely on supply and demand. If the market suddenly shunned these historically sought after materials, you’d have a hard time selling them for anything.
There’s a simple reason that investment gold is much more common that investment diamonds, though: it’s possible to buy gold bullion at a fair market price without a ridiculous markup. Diamonds, on the other hand, aren’t usually purchased wholesale, and therefore can hardly ever be purchased for a reasonable investment price.
In any case, diamonds and gold are often sold together, because they’re a beautiful jewellery pairing. This means that, often, you won’t need to concern yourself with which type of jewellery could yield better returns because you can buy them in conjunction.
When this is the case, all you have to do is find a reputable buyer willing to acquire both diamonds and gold. Gold Buyers Melbourne has extensive experience with buying and selling diamond jewellery and gold, so visit us to discuss what sort of returns you might be able to receive for yours.
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