Diamonds are most frequently seen in jewelry that is meant to symbolize something that endures throughout time. As the markets and economy fluctuate, sometimes enough to cause great distress, the temporary nature of the most popular types of investing is made painfully clear. For many years, the wealthiest of the wealthy put their money in precious metals and gems. Where gems are concerned, there are none more precious than diamonds.
As the slogan goes, diamonds are forever. Whether or not you believe in the romantic implications of the famous slogan, diamonds themselves last for generations, and diamond jewelry is an investment that carries with it the wisdom of generations past. Many parents and grandparents would pass on a part of their wealth to their descendants in the form of jewelry. Precious stones tend to increase consistently in value over time. Moreover, the metals in which such gems tend to be set increases over time as well. Look at the prices of gold for an example of this. The jewelry itself can have a value over and above the value of the materials, quite often, and antique pieces are an excellent way to keep some money tucked away for hard times or, preferably, to keep tucked away forever so that they may be passed on to future generations.
According to some press reports, Americans are looking for better ways to spend their money. The era of crass consumerism appears to be drawing to a close and, rather than mourning the end of the era, Americans seem to be looking for intelligent, durable and worthwhile ways to spend their money. Diamonds are one of the few items on the market whose value does not immediately plummet as soon as the purchaser leaves the store at which they were bought. With some reports saying up to 80% of people have a very strong interest in spending less and putting the money they do spend into more intelligent purchases, diamonds shine as never before.
Diamond jewelry need not be of the incredibly expensive sort to gather value over time. Even a simple diamond ring, passed down over a generation or two, can become a valuable asset. Jewelry has the added benefit of having more than a monetary value.
Investments in stocks, bonds and other common market products are subject to the moods of the market. They also have absolutely no value beyond the amount of money for which they may be sold. Jewelry is part of a family’s history. The pieces bought to commemorate significant events are particularly valuable in this regard. Having one’s great-grandmother’s engagement ring is a visceral connection to one’s past that cannot be matched by a trust fund, some interest in a company or other common forms of inheritance.
Jewelry also provides its own incentive to save, something in which people dealing with today’s unpredictable economy are rapidly developing a stronger and stronger interest. It can be difficult to hold off spending that extra money one has tucked away, especially when things seem to be going well. Most people who inherit jewelry would only sell in the worst of scenarios. This built-in incentive to hold on to valuable items makes saving not only a fairly easy goal to meet, but one which carries with it more satisfaction than a mere savings account could ever provide.
Diamonds, of course, can also be worn, and skilled jewelers can create designs that don’t risk going out of style. Hedge funds may come and go, buying on the margins may prove to have been a horrible idea, but a simple, elegant piece of diamond jewelry will always provide a way to communicate class, elegance and, frankly, a bit of wealth!
As the ostentatious consumption patterns of the end of the 20th century go out of style, diamonds remain accepted as a very dignified and elegant means to both show off success and to ensure that there’s something to rely on should the markets have more problems. For investors looking for a great place to sock away some money in a very low-risk investment, gemstones provide a straightforward, easy to start option. Even those who aren’t wealthy just yet can easily start investing their money in diamonds as there are many forms of jewelry that are not overly expensive but which are diamonds, nonetheless.
As time goes on and the economic future remains uncertain, banks may fold, stocks may crash and markets may turn from bull to bear at the drop of a hat but precious gems have always been a preferred investment choice of those who know how to handle money. While a 401K can disappear without a trace and one’s retirement funds with it, where wise investments are concerned, the phrase “diamonds are forever” probably has more meaning now than it ever did in the past, and for more reasons, as well.