Investing in Diamonds vs Gold | BNT Diamonds
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Investing in diamonds vs gold

Commodities are referred to as an alternative investment category. Diamonds and gold, in particular, are often subjects of comparative analyses by potential investors. We have summarised the most significant differences between both natural resources below:

GoldDiamonds
Safe havenMediumHigh
CAGR* (1985 - 2010)8.9%10% for 3 ct
Longterm volatilityHighLow
Weight for the same value**150 gr0.2 gr for 1 ct
TransportabilityLowHigh
TangibilityMediumHigh
Esthetics / Emotional valueMediumHigh
CertifiedYesYes
MarketPublicPrivate

*Compounded annual growth rate
**Based on 1oz Gold Price and 1ct Diamond Price, Jan 2013

Although diamonds and gold appear together in jewellery, the valuation of these two resources is entirely different. These differences can be best explained by the fact that each diamond is a heterogeneous and unique piece with its own specific characteristics. In contrast, gold is a homogeneous substance that can be valued as a commodity.

Learn more about diamonds as an investment

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