Winning the lottery is everyone’s dream; we imagine the amount of money that instantly comes. It may come to luck or persistence when it comes to buying a lottery ticket. You should keep in mind that every time you bet on the lottery. You’ve at least a higher and better chance of winning it than […]
Diamonds have a lot of advantages. They make a perfect gift for anyone, for any occasion. They are great investments as well. However, just like everything else in this world, they have their downsides as well. Before you get started on purchasing diamonds on your pink diamond list, consider reading this article first. This article will enlighten you about the downsides of investing in diamonds. Without further ado, let’s start.
- Cost visibility
Although different merchandises like silver and gold possess a price catalog that can be observed and checked out in the stock market – expensive diamonds tend not to have one. You can only rely on the Rapaport price listing, which is being relied on by the majority of diamond dealers. However, that is not sufficient. The list is utilized as a standard and even though you could possibly get a reproduction of the price list, it’s not going to be helpful for a number of factors. The Rappaport list only considers basic elements such as carat weight, quality as well as the color.
However, the price is not determined by those qualities. The price is determined by one factor alone: the supply and demand of diamonds. There is no visibility when it comes to tracking that one particular area of diamond price, which accounts for its lack of price transparency.
- Insufficient tradability
Purchasing expensive diamonds is pretty simple to do. The difficulty lies in selling it. There are several businesses who purchase expensive diamonds in the same way that there are several companies who purchase precious metals such as gold. However, they will not pay enough in order for you to make a profit, and sometimes you cannot even get back your initial investment. Selling it online will also be hard, due to the high price of diamonds.