Many jewelry enthusiasts consider diamonds to be a safe investment, but the truth is that they are not a recommended option for individuals.

First of all, we must distinguish between purchasing diamonds from a professional, who has access to the appropriate buying and selling channels, and owning a diamond as a personal investment. While a professional can make well-considered investments in diamonds, private individuals risk losing money.

The first reason is the lack of liquidity. When buying a diamond, it is difficult to find a buyer willing to pay the right price. Selling takes time and you are often forced to accept a lower price than the one paid for purchase. This makes investing in diamonds as a vehicle for creating wealth difficult.

Secondly, diamonds are not a diversified investment. When you buy a diamond, you put all your money into one asset. This means that you are exposed to high risk, since if the diamond market collapses, the value of your investment can be drastically reduced.

Finally, the value of diamonds is not stable. The diamond market is highly influenced by factors such as supply and demand, production, currency fluctuations and economic policy. The price of diamonds can therefore be highly volatile and uncertain.

Furthermore, when an individual attempts to sell a diamond, they often find that the market value of the diamond is much lower than what they paid for it. This is often due to the brokerage and distribution costs associated with purchasing a diamond. Furthermore, many jewelry stores and gold buyers offer very low prices compared to the actual value of the diamond.

In summary, while diamonds can be an attractive investment for industry professionals, they are not recommended for individuals. Investing in diamonds requires specialized skills, market knowledge and access to the right channels for buying and selling. For most people, there are safer and more convenient investment options.