For a long time, the interest of private investors and savers in new investment opportunities was not so great. Many people are simply dissatisfied with the classic investment and savings products and are looking for alternatives. Of course, there is a reason for this: the fear of inflation and currency crash is going around. Many people are therefore not interested in achieving high returns. Instead, the protection of assets is in the foreground.
As can be seen from circles in the jewelery industry
private investors seem to have discovered the area of gemstones. Especially diamonds are currently very popular: private individuals are increasingly buying diamonds – and loose diamonds. It’s all about the gems that serve as an investment.
That diamonds are bought at once is not surprising. If the worst fears of some savers come true, then cash and savings would almost completely lose value in no time at all. Although gold and real estate would also be interesting alternatives, but there are risks here: Some people suspect a price bubble, which could soon burst. Real estate investments, in turn, require a lot of work and require the use of extra capital.
Gems become a financial investment
Diamonds seem to be the perfect alterantive. Even smaller amounts can be invested and also the gems can hide well and, for example, much easier than gold to smuggle across borders. Accordingly, the increased interest does not surprise – especially as this market has so far received hardly any large influx and thus the risk of a price bubble is significantly lower.
However, gemstone experts warn against getting started. In their view, there are two major issues. First of all, there is the fact that gemstones are not subject to such strong price fluctuations and no one can say whether prices will ever pick up. Even bigger, however, is the problem of price creation: dealers of gemstones set immensely high profit margins. End customers buy the stones thus very expensive. When selling to retailers, they have to accept huge discounts of up to 50 percent.