Diamonds are forever - outlasting even the most long-term and stable marriage. They remain a girl's best friend through divorce also, as buying diamonds is not only an investment option as part of a long-term financial plan, it makes investing somehow feel more glamorous! Who wants a load of gold stashed in a safe box when they can have beautiful gems to enjoy that also provide security for the future?
In this interview with diamond specialist Monica Bortolin-Cossa of MBC Diamonds, I learned why diamonds make a canny post-divorce investment and can allow financial planners to offer a more enjoyable aspect to an investment portfolio. Investing in diamonds may encourage more women to take their long-term financial security more seriously - because diamonds just make all that financial portfolio thing far more interesting!
"When you find yourself in the process of getting divorced, all your world gets turned upside-down and everything seems to be much more difficult and complicated. If you are in this particular situation you want to look at your future and secure your wealth for you and for your children.
One way to secure that future is to look at the different possible investments. There are many out there, some more conventional than others like bonds and shares, some more secure than others and some so called "alternative investments." Well, diamonds are in this last category as they are considered an alternative to traditional investments and general commodities.
You have to be aware that diamond investment represent approximately only 1% of the entire diamond market, as the majority are still sold as gems for jewellery.
When you invest in diamonds you have the opportunity to improve and protect your wealth by investing in assets that are tangible, portable and highly concentrated in value such as traditional colorless, or so called white diamonds, and the more exotic natural coloured diamonds.
Over the decades, and especially during times of great economic uncertainty, investors have learned that diamonds provide a reliable store of wealth.
Historically commodity prices have generally been less volatile than stocks and bonds. For example, over the past 50 years, diamonds have risen in price annually by at least 10%.
However, the increase in value has not been in a straight line. There have been periods during which prices were static or barely increasing. Nonetheless, except for these short pauses, prices have generally gone in only one direction... Ascending!
Most investors know that it is not wise to be over exposed in one particular investment. This is why experts spread their risk through various investment products so that they can provide greater stability and growth.
Institutions and sovereign nations are purchasing diamonds as a store of wealth and to hedge against economic uncertainty and market volatility.
Given the huge increase in demand and the imbalance in supply, we expect good returns in diamond investments.
The global demand for diamonds is set to continue rising as emerging markets, like China and India, continue to purchase diamonds in order to protect and increase their wealth.
There is an additional bonus for sophisticated investors and collectors who experience enchantment from the ownership of beautiful works of art: in this case, nature's works of art... Diamonds!
Diamonds are a must-have asset for a secure investment portfolio."
Interview with Monica Bortolin-Cossa
Managing Director MBC Diamonds Limited