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Investing in Loose Diamonds Protects You from Stock Market Whims

As worried as people can be when it comes to a new investment opportunity, they are starting to embrace the thought of investing in loose diamonds because it seems less frightening than other options. Investing your money can be a scary proposition. There is a reason many people equate the stock market with gambling. You are basically putting your life savings in the hand of some faceless company and hoping that they have enough intelligence to do the right thing, be successful, and protect your money. Of course, it doesn’t matter how well they have done in the past. There is any number of unknown factors that can come in and mess things up, leaving you with stock certificates that aren’t worthy enough to be fish wrappers. It is really no different than flipping a coin ten times in a row and it coming up heads all ten times. Flip eleven is still a fifty/fifty shot.

When you put your money in the proven safety of certified loose diamonds, you eliminate so much of the risk that it is one of the closest things you can call a sure bet. It’s easy to bring up the issue of past performance, asking why it is so important to consider when investing in stocks and bonds, and not nearly as big a factor when investing in diamonds. The answer is simple. The value of stocks and bonds are based on a company’s performance, which is almost fully dictated by the governing board and the stockholders - in other words, by a bunch of fallible people. Diamonds earn their value by the age-old rule of supply and demand. There is always going to be a demand for something that is continually in short supply, just like there has been for almost two thousand years when it comes to the diamond trade. This is a time where history is a great teacher of what the future holds.

There is nothing that can be done that will totally eliminate all risk of something happening to your money, short of stuffing it all in your mattress. However the price you pay for that safety is a loss in value. Not only do you not earn any interest, the buying power of what you have will diminish over time.