When you compare the availability of gold and diamonds, there is a common misconception that diamonds are scarce. However, they are much more abundant than gold is, and you can also make diamonds artificially. When you consider investing in either gold or diamonds, you will want to do some research before making your choice. Below is some information to help you make your decision and ensure you make a wise investment.

Comparing The Costs

The cost of gold is relatively stable, and the market dictates the value of gold based on its purity and weight. In Australia, for example, the price for a gram of gold is around $70, with the price increasing since the pandemic first started. However, the cost of diamonds can vary drastically, and a one-carat diamond weighing roughly 0.2 grams can vary in price between $3,200 and $23,000. Looking at these figures, you may think it is obvious that diamonds are more valuable, but this is not the case.

The Mark-Up On Diamonds

Whether you purchase diamonds as loose stones or in a finished piece of jewellery, the place that you are buying them will have a significant mark-up on the gemstones. The result of this is that as soon as you take them out of the store, they reduce in value quite considerably. Many jewellers and dealers will purchase their diamonds at wholesale prices in bulk, which means they are much cheaper than they appear. When you look at places where to buy gold, you will want to try the gold dealers Brisbane has if you live in the city. For those outside Australia, you can rely on Google to help you find reputable dealers near your location. Once you make your purchase, the value of your gold will not drop as diamonds do.

Not All Diamonds Are Equal

When gold is mined, it is refined to ensure it is pure, and the cost of pure gold is the same worldwide. However, diamonds have many factors which determine their value, and dealers often refer to these as the 4 Cs, which are as follows:

• The Cut – The shape the diamond it cut in.
• The Colour – The colour of the diamonds.
• The Carat Weight – How big the diamonds are.
• The Clarity – How many imperfections the diamonds have.

You can have two diamonds that are the same carat weight, but the value of each is drastically different because of the colour, clarity, and cut. One gold bar is worth the same as one of equivalent weight, so you can purchase gold much easier and remain safe knowing that the value of your investment is the same whichever gold bar you are buying.

Buying & Selling Gold Is Much Easier

Although you will need to do some homework when investing in gold, you do not have to research as much as you would when you want to invest in diamonds. There are many reputable precious metal dealers where you can buy and sell gold quickly, and the cost will be as the market dictates, minus a small commission for the dealer. Depending on the quality of your diamonds and other factors, selling them may not be as easy.

When you are looking to invest, choosing gold is a much safer option than diamonds, which is also going to increase in value over time.