Although diamonds and gold are often paired together in jewellery, the valuation of these two resources is entirely different. One of the best explanations for this is that each diamond is a heterogeneous and unique piece with specific characteristics. In contrast, gold is a homogeneous substance that can be valued as a commodity.
As shown on the chart above, diamond investments offer low volatility with a higher compound annual growth. These insights show diamonds generally provide a greater and more reliable return on investment. Meanwhile, they offer a higher tangibility and emotional value over gold investment.
Another key difference between the two commodities is that gold is traded on the public market, whereas the diamond trade is private. Though both goods can hold certificates to solidify their value, it may be easier to convert diamonds to cash over privately traded diamonds.
Ultimately, both gold and diamonds are popular and viable investments. But, diamonds can offer higher security if you have the correct information before investing. BNT Diamonds provides expert insights and extensive collections of investment diamonds. Get a quote for our high-quality investment diamonds or contact one of our experts today.