Investing in precious metals and gemstones has long been a popular choice for individuals looking to diversify their portfolios and hedge against economic uncertainties. Among these options, gold and diamonds stand out as timeless symbols of wealth and luxury. When it comes to deciding between investing in gold and diamonds, it’s not just about dazzle and shine. Both have their allure, but which one makes more sense for your portfolio? Let’s break down the glittering details of these precious assets. Let’s see if gold shines brighter or if diamonds have been a girl’s (or investor’s) best friend in terms of market volatility and risk.
Gold and diamonds have been around for ages, like the OGs of the investment world. But who has been the real MVP in terms of performance? Compared to diamonds, the value of gold is frequently less affected by shifting market trends, and its demand is still strong and widespread. Gold’s persistent demand and stability as an investment option are attributed to the fact that central banks, investors, and consumers throughout the world continue to prefer it, making Gold a better investment choice.
When it comes to cultural significance, gold has long been revered across various civilisations as a symbol of beauty, wealth, power, and status. In contrast, while diamonds have gained popularity in recent centuries, they lack the timeless appeal and historical significance that gold has held for many cultures.
Gold is relatively easy to store securely due to its high density and durability, making it a convenient investment option. Furthermore, insuring gold holdings is straightforward and cost-effective compared to insuring valuable diamond collections, which require specialised coverage and a lot of security measures.
Issues of ethical sourcing and labour practices continue to plague the diamond industry, with concerns about conflict diamonds and human rights violations. While gold mining is not exempt from ethical challenges, efforts to promote responsible mining practices and traceability have gained traction in the gold sector, making it a potentially more transparent and ethically viable investment choice.
While both gold and diamonds can offer diversification benefits to an investment portfolio, the practicality and ease of diversifying with gold are often more accessible to investors. Gold’s liquidity and ability to serve as a hedge against economic uncertainties make it a versatile asset for diversification purposes.
FUN FACTS ABOUT DIAMONDS
- Diamonds were discovered in India roughly 2800 years ago.
- Diamonds are the purest gemstone known to man, consisting entirely of carbon atoms. No other gemstone has the same purity.
- Diamonds were brought to Earth’s surface by volcanic eruptions of the kimberlite magma type.
- Diamonds have been extracted from the seabed off the west coasts of South Africa and Namibia. These diamonds are known as alluvial diamonds, and rivers have transported them thousands of kilometres from inland to coast.
- Diamonds are ancient, they goas far back as a billion years ago. Some gems from the Cullinan Diamond Mine in South Africa have been dated to 3.2 billion years ago.
- Diamonds formed in the Earth’s mantle, roughly 150 – 250 kilometres below the earth’s surface, under extreme heat and pressure.
- Russia is the world’s greatest diamond producer, producing 42.6 million carats in 2017, accounting for 28% of worldwide output.
- Blue diamonds are an accumulation of Boron impurities in the diamond’s crystal structure. They are extremely uncommon and valuable, and the Cullinan Diamond Mine in South Africa has generated the majority of the world’s blue diamonds.
- Pink diamonds like the blue diamonds are similarly rare, and the hue is thought to be caused by crystal distortion during diamond creation. The Argyle Diamond Mine in Western Australia, the world’s largest producer of pink diamonds, is expected to close in 2020.



- Fun facts about gold
- Gold is a valuable metal with numerous unique properties. One of its most notable features is its malleability, or the ability to be moulded and moulded into various shapes. This makes gold an excellent material for jewellery and other ornamental things since it can be easily manipulated into elaborate shapes.
- Although gold is a heavy metal, it is not toxic. Gold does not react with other chemicals or elements, and so does not emit any hazardous compounds into the environment.
- Because of its non-toxicity and inert nature, it may be used in medicinal applications without risk.
- Recent study shows that gold and other precious metals originated in space. Meteorites colliding with our planet millions of years ago are thought to have contributed up to half of the Earth’s gold. This means that gold, and other precious metals, are actually extraordinary.
- Did you realise that our bodies contain 0.2 percent gold? This may sound strange, but it is true. Gold is one of the most prevalent elements in the universe, and trace amounts may be discovered in a variety of objects, including our own bodies. It acts as a protective barrier, keeping us healthy and safe from environmental threats.
- Money does not grow on trees, but gold does. Australian scientists discovered gold in Eucalyptus leaves. Eucalyptus roots may go up to 130 feet deep in quest of water. Because gold reserves may be found in water and underground, the Eucalyptus tree absorbs tiny gold particles and transfers them to the leaves through photosynthesis.
- Looking for gold? The oceans are a great area to look.
Unfortunately, it is quite difficult to remove. The ocean is deep, therefore gold reserves are buried a few miles beneath it. When you arrive to the ocean below, you’ll notice that gold reserves are similarly imprisoned in rock and must be mined.

