Those who argue that diamonds are the best friends of girls would not be hampered by financial advice, says an article published on the CNNMoney website.
Certainly, precious stones in engagement rings, necklaces and royal crowns are of high value, but a good investor first of all needs to know how their price changes in the future.
So, in 1987, a high-quality diamond weighing 1 carat cost about $ 6,000. Now, in calculations based on the index Rapaport, its price can reach $ 13,000. This dynamic looks good, if you do not think about what happened during this time with the shares of jewelry retailer Tiffany & Co.
Trades in a luxury retailer on the New York Stock Exchange began in May 1987 with a mark of less than $ 2 apiece. Now 1 share of Tiffany costs $ 100.
Thus, if someone had spent $ 6,000 on buying Tiffany shares instead of the diamond ring in those days, he would now have had a fortune of over $ 312,000.
Although the prices for diamonds vary greatly depending on their quality and size, it is worth noting that even diamonds of 3 carats did not rise as much as Tiffany shares.
Even if we assume that the investor waited until 2010, the advantages of Tiffany's shares are undeniable: in 2010 a 1-carat brilliant of high quality cost about $ 11,000 (according to Rapaport). Now it would have gone up to $ 13,000. At the same time, the Tiffany shares bought for that price rose to $ 23,000 over the same period - this would be enough for the engagement ring and the honeymoon.