For centuries, prudent financial planning meant possessing your assets as tangible goods rather than paper money. Items of true worth are accepted and valued across cultural and language barriers, and those with the means to do so have been insuring their wealth with such goods as long as they have been treasured. There is perhaps no better example of such an item than diamonds.
Some think keeping wealth in physical goods is as an antiquated notion — but the importance of holding tangible goods as a store of wealth has perhaps never been higher. Since the removal of the gold standard backing American currency, the dollar has steadily declined in value, leaving investors uncertain and placing generations of resources at risk.
In fact, contemporary times have brought even more unpredictability to the value of a dollar as skyrocketing American debt makes the currencies of its creditors and competitors much more valuable. The green credit slips we carry in our pockets are a fiat-based currency in its purest form, good simply because the issuers claim its worth. History teaches us that a promise, no matter how ironclad and altruistic, is always subject to change. An excellent way to ensure your financial health separately from that of any other entity is to turn your paper and credit money into physical goods such as diamonds.
Most people make the mistake of assuming a diamond is a piece of unnecessary opulence worth only as much as the frivolous will pay for it. However, diamonds are indispensable in a wide range of industrial applications from drilling to machining parts to heavy polishing tasks. This combination of timeless value, prized beauty and widespread utility makes diamonds an investment with bulletproof value.
In these erratic times, loose diamonds are making a return as an effective vehicle of wealth retention. Diamonds are traditionally thought of as an extravagance or an ostentatious luxury, but like other precious materials such as gold and silver, diamonds have true universal worth. This means that regardless of fluctuations in markets or political vagaries, diamonds are virtually guaranteed to hold their value. Unlike most other items traditionally thought of as consumer goods, diamonds do not depreciate in value with time.
Traditional methods of investment such as banking and bonds carry the same flaws as maintaining resources in paper money. Many federal bank accounts in the US are only insured up to $250,000, and interest rates are subject to frequent and often capricious fluctuation. Investment in land is a risky prospect because of external factors that could drastically affect value.
With diamonds, the perpetual demand for precious goods determines and safeguards the value of the investment, guaranteeing the worth of your diamonds lasts as long as they do. Diamonds are durable, portable and discreet, making them an ideal choice for those seeking a secure and subtle way to lock in wealth with tangible goods. Owning tangible goods as wealth and in this rapidly changing world of today, there may be few better opportunities than investing in the emerging diamond market. You may wish to consider investing in diamonds to shield your prosperity from undue influence.
Photo Credit: Kim Alaniz