Jewellery like gold, pearls, diamonds and even watches are often seen as an investment. However, according to Financial Coach, CFA Charter holder and lecturer Patrick DeBattista, diamonds “are not forever when it comes to financial returns.”
Historically, Mr DeBattista said on LinkedIn, diamonds have underperformed when compared to other assets like gold, equities or real estate.
He stated that, globally, every asset seems to be hitting record highs. In contrast, the price of diamonds “has plummeted to its lowest point this century.”
Mr DeBattista attributed this to three factors. Firstly, he commented that a change in consumer preference is seeing Millennials and Gen Z favouring experiences and lab-grown diamonds over traditional mined stones, such as diamonds.
Additionally, he noted that the global diamond market saw an influx of inventory, driving prices down.
Furthermore, he noted that shifts in discretionary spending are hitting luxury goods hard.
Diamonds, being discretionary purchases, have been particularly affected. McKinsey & Company had noted a 12 per cent decline in global jewellery spending in 2023, when compared to pre-pandemic levels.
Cheekily, Mr DeBattista said that while diamonds might not have the biggest financial return, for those planning to propose “timing couldn’t be better” since prices are lower.
‘Business must not become shorthand for questionable dealings’, says Quinco Holdings Executive Chairman
Norman Aquilina calls for a clear distinction between legitimate business and improper conduct.
Eurocargo Logistics integrated into Gollcher Group as Luke Vassallo takes on new role
Luke Vassallo joins Gollcher Group as Freight Manager.
Grant Thornton Managing Director says offshoring can help manage economic growth
George Vella says financial services sectors can grow without straining the infrastucture.
Ioannis Mavroudis Mavridis to serve as interim CFO at GO’s Cablenet
This announcement comes as Velisarios Masouras steps down from CFO in October.
