Warren Buffet: “I never regretted buying diamonds… They are a good investment”.
Investment diamonds and equities don’t have much in common. Both diamonds and equities have the potential to generate substantial investment returns, but apart from that, they have numerous differences that ought to be considered before choosing which investment is more appropriate for you.
When you invest in diamonds, you are buying a tangible asset in your physical possession. Colored diamonds’ scarcity and the widening gap between supply and demand are likely to continue driving prices higher, thus providing attractive investment returns. Fancy colour diamonds are among the most popular investment objects for private investors in 2022 and 2023, outperforming both gold and stocks year to date.
When you buy equities, you invest in a company. Regardless of the business scope of the company, be it manufacturing, services or any other industry, your equity ownership get you a cut of the company’s profit (if there is profit) through dividend distributions.