The Deal on Diamonds

Diamonds are a girl’s best friend. Diamonds are forever. Diamonds are a good investment. Which statement is true? Diamonds are a good investment. This most certainly is true.They are not all glitz and glamour. They are a rock solid investment. The diamond market is not one that regularly makes news headlines because it is crashing. They are long lasting items. True, they are perishable but so is your home and it is still a good investment. Isn’t it?

The collapse of the housing market in the US last year set off a chain reaction in the global economy. People now are beginning to feel the impact. The millions of displaced Americans certainly felt the impact as they were forced from their homes by foreclosure. The banks still own most of those homes as the market has withered up this year. Your house may be lost to foreclosure but you can still own grandma’s diamond brooch.

The market is a tricky place and some people prefer to trade only in tangible items like gold, silver and gemstones. These people are often the ones you hear saying that playing with paper money or worse less digital money with no value backing is what has caused the current financial crisis. A diamond is a real investment. Some are worth more than your home!

The economy has its ups and downs over time. Living through one of those down times is challenging. The diamond is a possession that people will fight to protect. We have all heard the story of a person who gave up their life in a burglary because they refused to give up their possessions. Diamonds are one such possession. The sentimental value that is associated with the stone and the notion that it represents durable love has a strong hold on the psyche.

Women have become infatuated with the stone to the point that during the marriage proposal more attention is paid to the ring than to the man that bought it. The engagement ring has been popularized and romanticized throughout history by the elite. The rest of us have only been able to attain them during the last couple of generations.

The Romans were the first to place the engagement ring on the left hand. It was rumored to have always been on the third finger as the old myths stated that the “vein of love” ran from that finger straight to the heart. These rings were meant to represent the eternal bond between a man and his wife and the uniting of their families into one. Over time the idea grew in popularity among the aristocrats and wealthy nobleman. It seems like for as long as their have been diamonds there have been men willing to buy them for their women as a symbol of their love and faithfulness.

Diamonds in Our Grasps

It took until the 19th century before diamonds were plentiful enough to be affordable by any but the extremely wealthy. Ironically the affordability of diamonds made them lose value comparable to other precious gems like rubies, sapphires and emeralds. During this time many fine pieces were made that only used diamonds as an accent if at all.

The idea of a diamond engagement ring retained its popularity in western culture. The very wise marketing strategy of the diamond companies to inform the public on the notion of a diamond lasting forever was a huge success. It convinced people to view their diamonds in a different light: not just as a trinket but as a family heirloom. Prior to this advertising campaign that initiated the well known saying “A Diamond is Forever” in 1947 jewelry was not looked at in that way by the common man. We began to understand what royalty had always known. Diamonds stand the test of time.

It was Marilyn Monroe who sung “Diamonds are a Girls Best Friend” in the hit movie Gentleman Prefer Blondes which came out in 1953 that further indoctrinated the US and contemporary western society with that notion. Some women most certainly behave as though that is true. But the term is gold digger not diamond digger.

Many financial advisors will tell you that diamonds are a good investment. Especially in choppy financial seas such as the ones we find ourselves in today. Some people can afford to ride the rough waters and some cannot. It has been estimated that Americans who plan to retire in the next five years have lost up to 30% of their nest eggs. This means they will not be able to retire on schedule and have the money to continue out their days in comfort.

There are not too many among us who would be willing to part with a family heirloom diamond or even our wedding bands just to keep from working another five years. We treasure our diamonds for the meaning behind them and the sentiments they reflect too much too part with them. Some people even request to be buried in their diamonds. The upside to that disparaging thought is fact that there certainly can’t be people fighting over it if you bury it with your self.