The Hardest Asset
Diamonds were formed billions of years ago. Forever might be an understatement.
Diamond is the hardest material on the planet. Only a diamond can scratch another diamond. Natural diamonds were formed in the Earth’s crust over 3 billion years ago, and they’ve lasted that long already. They are timeless. For anyone wishing to diversify into “hard assets,” this one is the hardest that there is.
Portable and Concealable
A million dollars of diamonds can travel discretely, whether in a pocket or a locket. That much wealth in gold could not be carried by on person.
For thousand years, diamonds have been used as a store of wealth that can be easily stored, and carried, especially in times of emergencies. Over the ages, many fortunes have been preserved by being able to use diamonds as a store of value during dangerous times. No other asset is so light and cancelable. There are many documented cases of people actually—sorry about this—swallowing diamonds, to conceal them from rapacious conquerors or to move wealth across borders confidentially. It may sound distasteful—but it works.
Beloved & Beautiful
When not concealed, diamonds thrive in plain sight. More than a store of wealth, they are wealth–and can be enjoyed by you or a loved one, purely for their beauty.
Some forms of asset diversification yield current income, in the form of stock dividends, bond interest, and rental fees from property. Diamonds don’t generate cash dividends, but they are able to generate value while being held for diversification purposes. How? By being worn as jewelry.
It is not particularly difficult or expensive to take a loose diamond and have it mounted as a pendant, a ring, or in other types of jewelry. This means it can be enjoyed as jewelry by the owner, or a loved one. In India, especially, diamond and gold jewelry has a long tradition of being used equally as a store of value, and a form of adornment—at the same time.
The point is, while some investments may represent wealth (share certificates representing equity ownership for example), when you hold a diamond you are holding wealth itself. To anyone who values jewelry, a diamond has intrinsic value, and is not merely representative of something else. When you hold that diamond, you hold that value in your hands.