Gold jewellery is associated with wealth, and diamonds have been considered a status symbol across cultures for many years. As the demand for these precious items increases, it is time to invest in them.
But which one will yield a better return is still a question?
Investment in gold and diamond both are part of commodity investment. And one thing you should keep in mind is that commodities are a risky investment as their price fluctuates.
People usually invest in any commodity when the price is low. It is done with a mindset that they can get a better return in the future by selling it. When you sell gold or diamond, you may get a good return. But it depends on certain factors.
The best thing you can do is hold your diamond or gold until it becomes more valuable.
What are the critical factors of investing in diamond vs. gold?
When you are deciding to invest in either diamond or gold, there is no simple answer to decide which one is best and give better results in the future. Buying gold or diamond purely depends on your personal preference and financial background.
When you are investing in diamonds, consider the below points.
- Type of diamond
With the trend change, the demand for different types of diamonds differs in the market. Due to this, you may be unable to decide which type of diamond you should invest in. So, investing in various diamonds is recommended to enhance the chances of getting high sales returns.
When you sell your diamond, it may be possible that you do not get any return for the mounting. But if the diamond is mounted on high-quality gold, then you can easily get the value of gold along with the diamond.
- Quality of diamond
Make sure that you are purchasing a high-quality diamond. “For this, you need to consider the 4C factor, i.e., carat, cut, clarity, and color of the diamond you are going to purchase.” , Gagandeep Gambhir owner of Cash Your Gold Brisbane, one of leading Brisbane gold buyers was quoted saying.
While purchasing a diamond, ensure you get a valid certificate from the seller. This will make sure that you are getting an asset of genuine value.
- Diamond terminology
If you genuinely want to invest in diamonds to get a good return later, you should educate yourself with diamond terminology. Make sure to research 4C’s i.e., carat, cut, clarity and colour, and check out the value of diamonds having different colors.
When you are investing in gold, consider the below points.
- Buy from a trusted source
You should never purchase gold from any online store as it can be risky, and you can end up in a fraud situation. Always buy the gold from a licensed seller and ensure it is in physical form.
- Purchase physical gold
Instead of buying gold on paper, you should go for physical gold and keep it in your possession until you are not selling it. In this way, you can see what exactly you own and be protected from the gold shortage.
- Unencumbered ownership
While purchasing gold, you should ensure that you are the only owner of the gold and the company selling gold does not have any right over the asset after selling it.
What is worth more: Gold or Diamond?
Now we know that investment in diamonds and gold depends on multiple factors. But you should remember that there is no fixed price for both the assets as the market trend and demand for both fluctuates constantly.
But gold is considered as a safe investment in Australia as it can withstand inflation and offers reliable returns. You can always find some reliable gold buyers in Australia to sell gold.
“To get a better resale value from diamonds, you should always invest in quality diamonds that rank perfectly for 4C’s.
Which yields a better return: Gold or diamond?
After analyzing all factors, it’s time to conclude which will give a better return, gold or diamond?
First, let’s check based on quality.
The jewellery which is made of gold is not always pure. It is because gold is very soft, and jewellery typically contains 18 karats of gold, but 24 karts make pure gold. Depending on this factor, the price of gold varies.
Like gold, the quality of diamonds also varies. Since there is nothing like an impure diamond, but several imperfections can decrease the worth of the diamond.
Secondly, timing plays an important role
The price of diamonds and gold also depends on the demand and supply. So, if the market is suddenly shunned, you will have a hard time.
Gold investment is very common as compared to diamonds. People buy gold jewellery for investment purposes, but common people do not usually purchase diamonds as they are expensive compared to gold.
Nowadays, gold and diamond jewellery are usually sold together in a pair, so you should not concern yourself with which one to buy as you can buy and sell them in conjunction.
But you should always rely on a reputed buyer who is willing to buy both diamond and jewellery at the same time. Gold and diamond buyers in Australia have an extensive experience in the same. Visit a trusted store to enquire about the price for the same.