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.
‘Remove the risk and there is nothing left to make’: Crispy Studio Co-Founder reflects on creative sectors
The Culture Minister has recently described his first months overseeing the culture portfolio as “traumatic”.
Tina Lombardi takes charge of MIA’s Traffic Development Department
Her expanded role follows the departure of Alex Cardona.
Natasha Giorgio appointed Chief Commercial Officer at SoftConstruct
She brings extensive experience in commercial strategy, business development and the iGaming industry.
Nicolai Portelli named CEO of Charles de Giorgio Ltd
He brings extensive management experience, having held senior positions across many industries.
