With the world facing crisis after crisis, people are looking for more secure ways of investment. First the pandemic drastically impacted the economy of countries all over the world and now the Ukraine-Russia conflict is driving up the costs.
Inflation is reaching its highest rate in Australia as the Ukraine crisis and the recent floods are rapidly increasing the prices. It has been projected that the impact of floods and the Ukraine conflict could add 0.5% in the inflation and 0.2% in the March and June quarter, respectfully.
As the world battles to face this increasing inflation rate, many people are trying to find ways to protect their cash that is earning almost zero percentage in their savings account. Some investors are considering a rare diamond investment for long-term financial growth.
Diamond investment has always been considered a safe investment option that brings higher returns in the long term. This is becoming particularly true in the current unstable times with investors looking for rare diamonds to buy to secure their money.
Reasons Diamonds Are Top Grade Investment Against Inflation
Diamonds have always been considered a high investment grade option but now, more than ever before, rare diamonds have become the safest investment option for many investors. Here are some of the major reasons why this gem is an ideal investment against inflation:
Diamond’s Rarity
The overall price of diamonds is affected by many factors, including the cut and clarity. The major thing that makes diamond an excellent investment is its rarity. The rarer the nature and color of the diamond, the higher its value.
While colorless diamonds will always be in higher demand, unique colored diamonds are becoming a preferred investment option. Zimmi yellow diamonds are among the top rare diamonds that people are now investing in.
This gem's rarity increases its value rapidly because of the limited supply and the high rate of inflation. The stones with some flaws and imperfections are not going to appreciate much with time but rare yellow diamonds are considered more investment grade and are bound to appreciate more than other diamonds.
Limited Supply of Rare Diamonds
Rare diamonds are limited in supply, making then an inflation hedge. This means that these diamonds' value steadily rises and even faster than the inflation rate. The global supply of diamonds is estimated to decline with the limited availability of mining projects, indicating the demand will rapidly increase.
There haven’t been many modern exploration licenses given, particularly in regions like Sierra Leone, which is renowned for its intense and rare Zimmi yellow diamonds, but Millenium Kapital will soon be the first to be granted this exploration license for this area.
With the continuous increase in the demand for rare diamond and limited supply, a diamond investment will rapidly rise in value.
Other Factors
Diamonds are excellent commodity investments for numerous reasons that make them a safe investment option during the increasing inflation rate. One of the major reasons is easier storage and portability. You can safely store the diamonds after buying them and transport them easily when selling them.
The high durability of diamonds ensures their value won’t decrease no matter how long you keep them. Diamonds are among the hardest substance on earth, indicating your investment will be safe and get you higher returns when you sell.
Another great thing about diamond investment is that you can actually use them without reducing their value. Adding them to necklaces, earrings, and rings enable you to wear them at multiple fancy events while their value increases over time.
Tips For Investing In Diamonds
While investing in diamonds is an excellent investment during inflation, it is essential to ensure that you are investing in the right diamonds to enjoy maximum benefits. Here are some valuable tips that can help you:
Understand The Basics
The four Cs of diamonds are crucial to know before you make the buying decision. These four Cs are as follows:
● Clarity - The clarity grade would be higher with the lower rate of imperfections in the diamond
● Cut - The cut of the diamond indicates its brilliance
● Color - Colorless diamonds hold the most value but there rare color diamonds, like Zimmi yellow diamonds, have an even higher value
● Carat - The weight of the diamond has a major impact on the value and the resale value of the diamond
Setting The Budget
Another factor to consider when buying diamonds is the budget. It is essential to note that diversifying your investment portfolio is the right step forward, which is why you must determine how much amount you want to allocate for diamond investment. Considering the fact that it is an ideal investment against inflation, be sure to set the budget accordingly.
Ensuring Authenticity
When you start looking to purchase a diamond, you will end up finding multiple diamond retailers. However, you must ensure that you only purchase certified diamonds. Millenium Kapital provides the Kimberley Process Certification with all their diamonds, indicating that the diamonds were extracted free from exploitation.
Wrapping Up
With the increasing inflation rate, people are looking to diversify their investment portfolio, with many turning to diamond investment. Diamonds are subjected to the supply and demand fluctuations, meaning the rarer the diamond you invest in, the higher its appreciation value over time.
Investing in diamonds not only is the safest bet against inflation, but it also diversifies your portfolio and strengthens your overall investments. Get in touch with us today to find out more.