Fancy Colored Diamonds

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Stock Market vs. Diamonds - Investing In Fancy Colored Diamonds

At Hard Carbon Inc. we have been helping people choose the best fancy colored diamonds as an investment for decades. As industry leaders we help clients invest in diamonds purely as an investment or to use in a piece of jewelry. Often, we are asked, which is a better investment, fancy colored diamonds or the stock market. This is a great question and we are happy to dispel some myths associated with investing in both.

When you invest in the stock market, you are investing in an actual company and the stock you purchase is a small piece of that company. If the company is profitable you might receive a relative portion of the profit’s, dependant on your investment. In turn, should the company begin to fail you would receive no dividends and your initial investment may plummet. It is often called ‘playing’ the stock market due to the volatility of the market – if you are up for the ups and downs then the stock market may be for you.

Investors in fancy colored diamonds are not buying stock – they are buying a tangible asset. A tangible asset is something that is often in a physical form and has a limited value – although it should be stated that this limited value can rise greatly over years. Tangible assets are an attractive investment vehicle because they can be physically bought and sold. At Hard Carbon Inc. we have found in recent years that investing in fancy colored diamonds is a much better investment than the stock market.

One of the main reasons that fancy colored diamonds have performed better than the stock market in recent years is rarity. Due to mine closures, the supply of fancy colored diamonds, specifically pink diamonds, has dropped but are more in demand than ever! But this isn’t the only reason investing in fancy colored diamonds is more profitable than the stock market. Below are some reasons why investing in the stock market isn’t all it’s made out to be.

When someone thinks of investing, the stock market might be the thing that comes to mind. But the stock market isn’t the easiest to conquer and many investors will tell you that it’s volatility can have both financial and personal consequences. One of the main disadvantages of investing in the stock market is the risk; it isn’t unheard of to lose your entire investment should a company perform badly. And as you are an investor, who has little to no say as to the day to day running of the company, you aren’t in control of how the business operates. This lack of control and oversight can frustrate many investors. Keep in mind, as an investor you may be investing in dozens of companies at any one time, which means keeping track of numerous companies can be next to impossible. With fancy colored diamonds being a tangible asset, you don’t have the same headache or risk.

Fancy colored diamonds are also not tracked by any government committee or central bank. You can invest in fancy colored diamonds without anyone knowing. Unfortunately, if you invest in the stock market and choose to sell your stock at a profit, those trades are reported to governments and you need to pay capital gains tax. But when you buy and sell fancy colored diamonds, no trading activity is reported to governments, so you pay capital gains tax on the profits you report.  However, there are strategies you can employ to delay paying the tax.

The roller coaster nature of the stock market can also take a personal toll. Watching your investments go up and down on a daily basis, with no guarantee of a return can be stressful. Like any investment it pays to do your research and keep an eye on your investment – but this constant checking can lead to people making rash decisions out of fear. Fancy colored diamonds aren’t as volatile and as long as you are prepared to hold on to them and be patient you can check on a less frequent basis the increase in your investment.

Investing in fancy colored diamonds doesn’t have the same number of pitfalls as the stock market. Providing you work with a trusted, reliable diamond dealer like Hard Carbon Inc., you can be assured that you are purchasing a high-quality GIA certified diamond. Unlike gold or silver which are monitored by the government, diamonds are free of any oversight, so you don’t have to worry about regulation or any government intervention.

Since its inception in 1957 it is estimated that the S&P 500 has gained on average 10.7% annually. Investments in pink diamonds are estimated to see a 20% annual increase. For people that enjoy risk and thrive on uncertainty the stock market might be the way to go. But if, as an investor, you enjoy a more stable, less volatile investment, fancy colored diamonds are definitely the route to take.

At Hard Carbon Inc. we can help find the perfect diamond as an investment opportunity for you. The best part about investing in fancy colored diamonds is that you can focus on one thing; working with our experts so we can help you understand the intricacies of the diamond market and teach you how to avoid common pitfalls. Unlike the stock market, you don’t have to completely give up your life to constantly research and check on your investments. At Hard Carbon Inc. we can guide you into the best investment diamonds whether you want to use it in a piece of jewelry or simply store it to sell in the future. With our global network of suppliers & clients we can source the best diamonds and help you sell when the time is right. Contact us today to get started on your fancy colored diamond journey.