Is Gold Worth More Than Diamonds? What to Know, Whether You’re Investing or Just Shopping
What’s worth more, gold or diamonds? If you’re just asking about the monetary value of gold and diamonds, then both synthetic diamonds and natural diamonds are worth more than gold.
However, the question isn’t as cut and dry as that. Suppose you’re looking beyond the monetary value, such as at the rarity of each material or the characteristics that might make one piece of jewelry more suitable. In that case, you’ll need to know more.
What You Will Learn
Gold vs Diamonds: Rarity
As far as precious metals go, gold is one of the more valuable options. Pulled from the Earth’s crust, gold has found its place in fashion and industry for millennia, valued over time due to its rarity. Most gold jewelry you see today is not made from pure gold but is, instead, made from gold mixed with some other, very common element that can bolster the soft metal and make it more resistant to scratching and similar damage.
So which is rarer, gold or diamonds? Gold is rarer than diamonds, despite what the diamond industry would have you believe.
The diamond industry is very good at marketing, portraying diamonds as luxurious, rare gemstones, and increasing diamond prices. Mining diamonds is notorious for being a tough, dangerous, sometimes bloody job, wherein miners are exceedingly lucky to discover a truly flawless diamond. However, while this is mostly true, if you wanted to wear an ultra-rare piece of jewelry, you’d forgo the diamonds and opt for solid gold.
Gold vs Diamonds: Cost
Rarity aside, is a diamond worth more than gold purely from a price tag perspective? Yes, diamonds cost more than gold, on average.
Diamond prices rely on a few things, primarily the 4 Cs, or the diamond’s cut, clarity, color, and carat weight. In other words, a diamond’s price isn’t just based on size. A one carat diamond may have a higher price than two diamonds weighing more because that single carat is flawless in every other way. To put it even more simply, sometimes quality outweighs quantity.
Gold worth, however, is determined by a range of broader factors. While the gold standard no longer allows you to use physical gold as a form of currency, the precious metal and its worth are still heavily connected to the economy. Beyond economic demand, factors influencing gold’s worth include interest rates, the stock market, world and geopolitical events, and more.
Suggested Read: 2023 Diamond Price Trends | BriteCo Jewelry Insurance
Gold vs Diamonds: Investments
If you’re new to the investment world, you might assume, based on all the above, that diamonds are a better investment than gold. After all, if you want to make money on your investment later, you should buy a higher value investment, right?
However, don’t make a snap decision and head to your nearest jewelry store to buy diamonds by the dozens. Gold is generally considered a better investment than diamonds for several reasons.
- It’s Easy to Sell
When looking at both gold and diamonds from a secondhand seller’s perspective, you’ll find that you’ll have an easier time if you want to sell gold. You can sell gold quickly at pawn shops and similar places, sometimes on the same day.
- It’s Stable
While the price of gold may fluctuate in the short term, in the long term, it’s considered a stable investment to opt for when other investments appear volatile.
- It Holds Its Value
Unfortunately, in most cases, when you buy diamond jewelry, that jewelry’s value declines as soon as you leave the jewelry store. Jewelry stores mark up the prices of their diamond pieces to turn a profit. The cost difference between their wholesale diamonds and the diamond ring you purchased is substantial.
Because of this, if you try to turn around and sell that diamond ring right back to the jeweler, a moment later, you’ll be offered less than you paid (think of it like buying a car and then trying to take it back to the dealer for a trade-in, the next day).
This instance isn’t the case when you buy gold, though, because the worth of gold is dictated by far more than just the jewelry industry.
FAQs
TL;DR? We’ve got you covered with all the quick, need-to-know facts about diamond and gold value.
What are Gold Reserves?
A gold reserve is a stockpile of gold in a national central bank intended to back up the nation’s currency if that currency loses value or in the event of economic disasters.
Is Gold or Diamonds Worth More?
From a purely monetary standpoint, diamonds are worth more than gold. However, gold is rarer than diamonds and is generally considered a safer investment.
Are Diamonds Worth More than Gold in Terms of Resale Value?
If you’re hoping to resell diamond or gold jewelry eventually, then whether or not you can recoup your investment will depend on a few factors. While diamond jewelry does cost more than gold jewelry, this is because jewelers mark up the price of diamond jewelry. Once you leave the store, that price plummets. However, if you have an exceptionally graded diamond and are willing to wait a while to resell it, you can find an excellent return on your investment. However, that said, gold is much easier to resell for a profit to more buyers quickly.
Are Diamonds Worth More Than Gold? The Bottom Line
All of the above aside, we’ll be the last to tell you you shouldn’t buy a diamond. While, yes, gold is rarer, diamonds are more expensive, and gold is a more stable investment option, there’s a reason why we all know and love diamonds. They hold a sentimental value that can be difficult to replace — and for some, that sentimental value makes a diamond worth more than gold every single time.
Whether you’ve recently purchased an engagement ring or want to protect your jewelry assets, whether you’ve invested in diamonds or gold, keep the value of your prized pieces protected with comprehensive insurance from BriteCo.
Learn more and get your free and quick quote now.
Also Check:
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Is Gold Jewelry a Good Investment? | BriteCo Jewelry Insurance
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