Why Are Customers Investing In Diamond Jewellery

Diamond Jewellery has always been the top most desired jewellery item for almost everyone . But was never considered as a valuable asset such as gold and its worth was only limited to hedonistic or sentimental value.

But the dawn of the new millennial witnessed an overall increase in the standard of living at a global level .The combination of higher purchasing power and technological developments made the customers much more aware than before. With information just at their fingertips they started learning and understanding more about investing and growing their wealth leading to a much diverse investment portfolio which now included diamond jewellery.

Earlier investing in diamond jewellery was highly discouraged due to lack of transparency in pricing. Also the major price determining factors like the color , clarity and cut were not regulated as much . Since most of the customers were unaware about these specifications they always associated the value of the stone with it’s carats and at some point or the other they felt cheated. Hence to overcome the pricing discrepancy gemological labs were established that graded the stones and issued certificates which helped in standardise the qualities of a diamond These certificates acted like an assurity for the consumers that insured the resale value of the diamond.

With the passage of time, as the diamond trade flourished the pricing of the diamond became dependent on its demand and supply and with the introduction of diamond trading platform , together all of these factors made buying diamond jewellery much more organised, reliable and transparent.

Compared to other tangible assets diamond jewellery has very high utilitarian value. Diamonds act as a store of value in it’s compact size which can be moved and stored easily making them a hard - asset i.e highly portable. Usually gold investment happens in the form of coins ,bars and most recently through bonds but neither of them can be used as jewellery. Here’s where diamond jewellery scores due their size they can be adorned as an ornament while being a powerhouse of wealth and act as a status symbol. Also due to it’s durable and non perishable nature , diamond jewellery is often passed on from one generation to another becoming an asset whose benefits can be cherished for a long time.

The new generation of consumers with refined taste gave impetus to diamond jewellery and a segment of millennials preferred diamond jewellery which was a sober alternative over gold as they found it to be more flashy. But investing in diamond jewellery should be long term in nature as they are considered to be inflation proof.

Since diamonds also enjoy high liquidity like gold they can also be traded off easily compared to other tangible assets. With the emergence of the estate jewellery market the resale of diamond jewellery also appreciated giving consumers an additional layer of confidence.

Considering the increasing demand for diamonds and it’s limited supply due to it’s non - renewable nature, it’s no surprise that customers are investing in diamonds more often than before.

‍