Diamonds are a girl’s best friend and a darn good investment too! Let’s take a quick look at a rare diamond versus an investment such as gold. Which would you think is the better investment? Sotheby’s recently had a rare blue diamond ring up for auction expected to fetch around $30,000,000. Not too bad huh!
This ring originally belonged to Shirley Temple. It was a gift from her father for her 12th birthday in 1940, and cost him $7, 210. If that $7,210 had been put into gold it would have bought about 13 lbs in 1940. At today’s prices that 13 lbs of gold are only worth $283,000. This makes the blue diamond ring approximately 106 times more profitable as an investment over the intervening period, give or take a few million dollars, but who’s really counting?
Just in case you are thinking of rushing out to buy a diamond, it appears that the trend of the knowledgeable now is towards colored diamonds rather than the traditional white. Unfortunately, the color will cost you a lot more as these stones are rare. One word of caution, however, you may have to wait until you are long dead to get a decent return.
One last important point to make: if you are thinking of hoofing it out of town quickly, Great-Grandma’s ring may be the way to go. You can just slip it on your finger and take off. Lugging 13 lbs of gold would be more conspicuous. Bon voyage!