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Diamonds Vs. Gold

1) Scarcity

Gold is thousands of times more common than Diamonds. All together, there are only 750 stones between 1.00 Carat to 1.39 Carat D Loupe Clean available per year for the whole world-production! To produce these 750 diamonds, the mining companies have to dig more than 800,000,000 Tons of Kimberlite (Kimberlite is the rock in which rough diamonds are found).

Garet Penny of De Beers states in November 2008 that, if we continue diamond mine at this rate, we are within 20 years without!

Natural Colored Diamonds are more and more scarce every year constantly decreasing production, while the production of Gold increases every year.

2) Gold price is artificial. Diamonds keep and increase their REAL value.

When it comes to gold, demand is influenced by consumption and investment. While the outlook on gold consumption for jewelry, in particular, and for industrial use, is largely a function of global economic activity, this factor is easily offset by its reputation as a risk-free store of wealth. With its historic roots of serving as a form of money, gold traditionally maintains its value as currencies depreciate. This, coupled with the current "cheap money" policies of the Fed and strong regulation from China running to protect their assets, have facilitated that people run to gold as the ultimate value holder.

As you are probably aware, Gold is often traded as paper, WITHOUT the backing of the actual metal. This makes the
metal exchange volatile and speculative. So while you intent to purchase gold as a safety net, the fact is that you're jumping on the arena where people speculate, buying and selling for short and medium term profit.


3) Transportability

As Rapaport Group's chief economist, Yariv Segev, explains, it can be argued that diamonds are even safer than gold, given their easily transportable nature. When you consider that traveling with a Natural Colored Diamond in your pocket is equivalent to walking around with 100 kilos of gold in your pocket, and when you consider that Federal governments have seized gold before, diversifying your precious metal investment to lower the risk, suddenly sounds like a really good idea.

Even though we mention the American government seizing all gold in the 30s, the reality is that we don't believe it will happen again, but governments COULD take measures to limit its accessibility to the public.

For the reasons above, we recommend our investors buying natural colored diamonds at true wholesale prices as an outstanding long term investment strategy over gold.

 
Worst Scenario: Credit Contraction | Colored Diamonds Vs. Gold