Sky News Arabia
Just like a car, diamonds are an asset that depreciates in value, as this metal loses much of its value when it is purchased by the consumer, but if a person wants to find a safe way to save their savings in times of crisis, he should look for gold.. So the economist Ali Hamoudi described Diamonds and their place among precious metals.
However, Hamoudi denied, in his interview with “Sky News Arabia Economy”, what many believe is that diamonds are a luxury product that is forbidden to approach in times of economic crisis and inflation, as it is only a precious stone. which has no value upon resale, indicating that diamonds also have the ability to hold value strongly, but only over the long term.
While gold retains strength in terms of inflation hedge and overall value, diamonds can often have a higher resale price, but this metal isn’t a very liquid asset like gold, according to Hamoudi, who said he explained that gold is classified as a classic metal while diamonds It is classified as an elite as both are known as a symbol of wealth and prosperity in many countries and cultures.
Since both gold and diamonds hold such a special place in many cultures, how does one decide which is the right investment choice?
Economist Hamoudi answers this question, saying: “In the discussion of investing in diamonds for gold, gold always takes the lead, as some people believe that diamonds do not hold their market value, but in actually diamonds have a value during resale, and this value is governed by market fluctuations and consumer demand, and in general, diamond prices usually increase over time, but there are other factors that also affect its price in the market, namely, the clarity of the stone, the way it is cut, the carat, the color in addition to the diamond certificate (reliability) and the demand for diamond stone in the market, these factors determine the resale value of diamonds , because unlike gold, there is no immediate market price for it.
In response to a question about the extent to which the diamond trading movement has been affected in light of the current economic crises, Hamoudi said, “The diamond trading movement has been affected during the (Covid-19) crisis, as the precious metal has faced demanded weakness due to mine closures, but as far as the current crises are concerned, it has not impacted demand in any way Significantly, and demand for diamond jewelry is expected to recover further in 2023, as China opens up the road to demand for diamonds after abandoning the zero Covid policy.
For his part, the economics expert Hussein Al-Qamzi, said in his interview with the site “Sky News Arabia Economy”: “Gold ingots in particular (unprocessed gold) issued and certified by specialized institutes is what currently we consider it a safe haven, because it comes with standard weights and clarity grades, and this is very difficult in the state of diamonds, which differs according to the grit, cutting method, clarity, color and carat weight, which makes buying and selling in general more difficult for investors.
Al-Qamzi explains that natural diamonds are not sold in the form of standard pieces such as bars, so it is confined to the jewelry manufacturing market or one of its stages, but points out that diamonds made in workshops have started to spread in a way that threatened diamonds extracted from mines and their future value.
