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.
Alex Rose confirmed as Multitude Bank’s new Chief Operations Officer
Alex Rose's appointment receives MFSA regulatory approval.
Pitbull concert ‘was a testament to how far our country has come’ – Mark Grech
On Sunday, American performer Pitbull rocked Ta' Qali with his famous hits.
‘At some point sales will fall’: Norman Aquilina cautions on grocery retail sector growth
'More stores do not create more demand, they simply redistribute existing spend across a larger base,' he says.
Atlantis Management appoints Anndrea Moran as Head of Legal
She serves as an Executive Committee Member of the Malta Maritime Law Association.
