Investment diamonds and stocks don’t have much in common. Both diamonds and stocks have the potential to generate substantial returns on investment, but other than that, they have many differences that need to be considered before choosing which investment is more appropriate for you.

Investment

When you invest in diamonds, you are buying tangible assets that will be in your possession. Color diamonds’ scarcity and the widening gap between supply and demand are what will drive prices high and provide high returns on your investment.

When you buy shares of stock, you invest in a company. Regardless of the business scope of the company, be it manufacturing, service provider or any other industry, your shares of stock get you a cut of the profit (if there is profit).

Pros of Investing in Stocks

• Stocks could, theoretically, bring you enormous gains overnight. But big gains are accompanied by high risks as well. Many people buy and sell stocks for a living, and make good returns. The stock market is like gambling, even if you make well informed choices, there is an element of luck involved. Diamonds are not the right assets to be speculating with. Each diamond is unique and individual, so it is not possible to exchange one for another, thus making selling diamonds a more complicated transaction. With diamond investment you should expect long term profits. If a diamond is sold under pressure it will not yield the full market value.
• Stocks have dividends, meaning you receive a profit without having to sell the stock. Regardless what the dividend is, cash-dividend or dividend-reinvestment, stock shareholders receive a part of the profit or reinvest it. Diamonds don’t pay dividends. The profits on diamond investment are possible to obtain only after liquidating the investment.
• Stocks are very liquid. It takes seconds to buy and sell stocks. The same stocks can be sold and rebought numerous times during one work day. Diamonds are much less liquid than stocks. Depending on the specific stone, it can find a new owner very quickly or it might take some time to liquidate. Liquidating channels for diamonds can be complicated and inaccessible for many investors. (That’s where we come in, explore more) make a link between this article and our services liquidating.
• Stocks can be diversified; it’s very easy to buy-sell-reinvest. Investors can do this themselves or through mutual funds. Diamonds are typically hard to diversify. Each diamond is unique so they can’t be traded freely or swapped.

As you can see above, there is not definitive answer as to which investment is the better choice, diamonds or stocks. It all comes down to the individual investor’s needs and preferences. Diamonds and stocks shouldn’t compete for the same place on the pedestal. They would, however, complement each other nicely if in an investment portfolio.