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We answer the question of people of marriage age: why do diamonds lose value while gold retains its value?

  • June 4, 2024
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Besides attracting attention with its bright and sparkling structure, gold is also a highly preferred material. investment instrument. So even though it is a very expensive and highly

We answer the question of people of marriage age: why do diamonds lose value while gold retains its value?

Besides attracting attention with its bright and sparkling structure, gold is also a highly preferred material. investment instrument.

So even though it is a very expensive and highly sought after gemstone, why does diamond not only retain its value like gold, but also multiply? Doesn’t he have the power?

The basis of the issue actually lies in the balance between rarity and supply and demand.

gold

Throughout history, gold has been found deep underground and has been very difficult to extract. rare It is considered a mine.

For this reason, gold, which is seen the same way today, is seen all over the world. An accepted investment instrument became.

Difficult to remove and limited amount As the demand for gold increases, its price also increases.

Well, isn’t diamond a rare and difficult mineral to mine?

diamond

Yes. Diamonds obtained as a result of diamond processing also occur in nature. rare is available.

However, because this market is largely owned by large companies, price is a priority. by companies Is being checked. Not according to supply and demand!

Of course, there is also the matter of diamonds being produced in a laboratory environment. This sort widespread use of synthetic diamonds Because it negatively affects the perception of the rarity of this valuable mineral, prices do not take the same shape as gold.

Considering the situations mentioned, the spiritual value of the diamond is more important than its material value.

gold and diamond

Value cut, color, clarity, carat It becomes difficult to determine the value of diamonds because there are more factors that determine their price than gold, as they are based on factors such as.

Furthermore, the price of a diamond is based on what it symbolizes rather than its actual value. to moral value Because it is controlled by corporations, so it is like gold. cannot be easily converted into cash We can also say.

Since it cannot be easily converted into cash, it is not considered an investment vehicle. seen as jewelry It causes.

Source: The economist, smart assets

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