The end of the financial year is upon us once again and if you’ve been considering investing in pink diamonds, now might just be a good time to take action – because this EOFY is shaping up to be a particularly interesting one.
In the wake of ongoing regular interest rate hikes in Australia, rumours of an imminent market downturn are running hot. And while that might not seem like great news, it actually sets up a situation in which investing in pink diamonds can be a great move. Pink diamonds have the potential to be an excellent investment during market downturns or economic crises due to a few factors. While of course it’s important to note that investing in pink diamonds – or any other asset – carries risks, here are some reasons why pink diamonds are considered by many to be a good investment during market downturns.
Investing in pink diamonds buys you a tangible and portable asset
Pink diamonds are physical assets that can be easily stored, transported, and traded. They are not directly tied to financial markets or dependent on the performance of stocks or bonds. In times of market uncertainty, investors often seek tangible assets like pink diamonds as a way to diversify their portfolios and mitigate risks associated with traditional investments such as stocks and bonds.
Rarity and limited supply
Pink diamonds are extremely rare, and their supply is diminishing, especially since the closure of the Argyle Diamond Mine in Western Australia. The scarcity of these gems is one factor that has been steadily driving up their value in recent decades. During market collapses, many investors flock to assets that are perceived as rare and valuable, and pink diamonds could potentially are very likely to benefit from this demand.
Pink diamonds are historically resilient
Over the years, high-quality pink diamonds have demonstrated resilience and long-term value appreciation. They have a track record of holding value and, in many cases, outperforming other investment options during economic downturns. Of course it’s important to note that pink diamond prices can be influenced by various factors, and the quality and provenance of the individual stone plays a significant role in determining their value.
Pink diamonds are often perceived as an investment safe haven
Some investors view pink diamonds as a safe haven investment during times of market instability. Safe haven assets are typically considered to have comparatively stable or even increasing value during economic crises. While pink diamonds do not offer guaranteed protection against market downturns, their tangible nature, rarity, and reputation as a luxury item have contributed to their perceived safe-haven status.
Investing in pink diamonds – get an expert on your side
The end of the financial year is a time when many Australians pay special attention to investing – and this year there’s the added consideration of a potential upcoming market downturn to consider, something that should drive special consideration of the type of investments to be made. Of course just like any investment decision, it’s crucial to approach pink diamond investments carefully and conduct thorough research. The need for expertise to evaluate stone quality and market dynamics cannot be overstated.
Consulting with financial advisors, diamond experts, or professionals with experience in the diamond market can provide valuable insights and guidance tailored to your specific investment goals and risk tolerance. The best way to gain an understanding of Pink Diamond investing is via a free Private Consultation with Eric Kariuki himself. Mr Kariuki is a qualified gemmologist and an expert in valuing, procuring and trading in Pink Diamonds. To enquire about a one-on-one Consultation, simply click here.