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Gold and Diamonds As Investment Options

Gold has been used as an investment instrument for centuries. Now increasingly diamonds too have emerged as solid investment options for people looking to diversify their portfolio and at the same time maintain a safe mix of investment options.

Gold and Diamond as Investment

Gold and Diamond as Investment

Diamonds
Most of the diamond mines in the world have passed their peak production phases. Plus there have been no new discoveries of diamond mines in the world. As such demand for diamonds is soon expected to outstrip supply. In view of this situation, there will soon be a time when there will be no more new diamonds on the market. This is where diamonds come in as excellent options for medium-term investment.

How to invest in diamonds
Investing in diamonds is now easy. The best option is certified sealed diamonds with a higher weight (more than a carat). Diamond jewelry with relatively smaller diamonds is not an attractive aspect, since at the most one can expect a buy-back for the diamond from the retailer they were purchased from. There may or may not be any value appreciation when one thus decides to dispose of the smaller diamonds. Large (and loose) diamonds however will face no such challenges at the time of resale. Especially when supported with a certificate from a reputed gemological institute. Diamonds can be bought online or from a retail store near you.

Gold
Gold as an investment needs no introduction. For centuries rich and poor alike have been buying gold as an investment and a hedge against inflation. Gold jewelry is made in all types of gold for instance lower purities like 14kt and 18kt and also higher purities such as 22kt and 24kt. The color could be yellow, white or rose. The rates differ for the different purities and colors of gold. Finding out the current rate of gold before you go out to sell your gold is a good idea. There are various websites that update spot gold prices several times a day.

Why invest in gold?
Central banks of many nations are expected to increase their gold reserves instead of selling. In addition to this, several gold funds reached all-time highs in the year 2007 and are still trending upward.

What to buy?
Any gold jewelry, diamond jewelry, loose diamonds or gold biscuits and bars can be termed as investments. Basically any precious item that can be redeemed with cash when the need arises can be call.

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