Everything has a value and two of the high-end value commodities are gold and diamonds, both rare natural elements that are highly sought-after. In order to compare prices, it is first necessary to take an in-depth look at both gold and diamonds.
Gold
This alluring yellow metal has been the corner-stone of global wealth for a couple of thousand years and that doesn’t look like changing anytime soon. Gold is valued by purity and weight, with 9k,14k, 18k and 24k purity. 9k & 18k gold is used in jewellery, while gold coins would typically be 92% pure, alloyed with silver and copper. Gold prices are set 3 times per day and the current price is called the ‘spot price’. The price of gold has been above $2,000 per ounce for quite a while now. This rising trend is likely to continue, as more private investors move into gold, which is a safe investment.
Diamonds
These carbon stones possess an irresistible sparkle, as the many facets catch the light and reflect it back and thanks to a very successful marketing campaign by the major diamond dealer De Beers in the 1940s, diamonds quickly became a girl’s best friend. Diamonds are graded using the 4Cs system – colour, clarity, cut and carat (weight).
Each diamond comes with a certificate issued by the Gem Institute of America (GIA), which details the stone’s properties and the value is based on this.
Diamonds & Gold Compared By Weight
If one was to compare diamonds and gold according to weight, the typical value of a 1 carat (0.02gm) diamond ranges from $2,000 – $20,000, depending on quality. One gram of gold, however, is worth around $60, so we could say that diamonds are about 40 times more expensive by weight. If you are looking to buy gold bullion Adelaide or the city where you are located has, there is a reputable gold bullion dealer with offices in the city.
This might lead you to thinking that diamonds are more valuable than gold, yet the yellow metal has a lot going for it. Gold’s value is stable and typically rises over time, whereas a diamond’s value will drop when you walk out of the jewellery store with that stunning engagement ring. Not only that, you can pawn gold, while most pawnbrokers won’t touch diamonds. Simply put, there is a retail mark-up with diamonds, while gold has a spot price that changes a few times per day. When you consider that a diamond is merely compressed carbon, gold seems more attractive as an investment.
Both precious metals and stones have their place in our world, yet gold is most definitely the go-to commodity for safe investment. Check out gold’s performance in the past few years and you will see why so many private investors are turning to gold. It is very easy to locate a nearby bullion dealer who has offices nearby and you can visit and acquire your gold.
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