Are diamonds a good investment? Are diamonds are rare? What are the advantages and disadvantages of investing in diamonds? What should one look for when investing in diamonds? What are the difference when investing in diamonds compared to stocks, real estate gold, art?
How does it correlate to real estate and stocks?
There is a positive correlation between diamonds and other assets such as stocks and real estate.
Why do people invest in diamonds? Why do people buy diamonds?
Diamonds are heterogeneous in nature which means that every diamond is unique. No two diamonds are the same. I would consider gold homogenous in nature.
What is a diamond?
A diamond is a highly desirable dispersive "precious" mineral.
What are the advantages when investing in diamonds?
1. It is perceived to have high intrinsic value
2. It is tangible asset that can be converted into cash
Mobility (Portability)
What are the disadvantage of investing in diamonds?
1. It bears no interest
2. It is somewhat illiquid
3. Diamonds are not fungible as each diamond is unique (Gold is fungible cause an ounce of gold is an ounce of gold).
No comments:
Post a Comment