Investing in land or diamond will seem like totally two different things and at one go nobody really thinks of them as similar areas. Well, if you look at them closely, they both are ways to convert money into something more than just paper.
- The similarities between the two investments
They are both hard assets. By hard assets, we mean that they aren’t some stock market share or bonds they are real assets that you can see and put to use. Land value could have various ups and downs depending on many points but diamond values are more stable in comparison.
They are both long-term investments. They both need time to mature so that they can give a substantial return. If you’re in a hurry for a return on your investments this might not be the option you might want to opt for.
- The differences between the two investments
There is no maintenance cost for diamonds. They are indestructible owing to the hardness and tensile strength. On the other hand, land or real estate has to be maintained. They might have a monthly management fee.
Portability of the investment is immense with diamonds. You could move around with diamond worth a couple of lakhs in your pocket. On the other hand, as you may have already guessed it is not quite possible to do so with land
Diamonds are pretty much stable to any external factors. In the face of adversity, you could run away with a few diamonds tucked away in your fist and rely on them to start over. On the other hand, the land is something that is always exposed to natural and man-made external forces and is heavily affected by it.
- 10 years down the line where do both these investments stand
Well, diamonds are something that has a stable market compared to the land or real estate market. 10 years down the line a diamond investment could yield pretty much a standard amount of money but as for land, values can appreciate or depreciate depending on many internal and external factors. Neither of them becomes ‘second hand’ as such so you can enjoy both your hard assets while you have them.
According to pink diamond research, investment in colored diamonds is on a bit of hype now and soon you could own diamonds by as little as a monthly payment of only 900 rupees.