Re: Investing in diamonds
Well I am assuming you won’t earn interest on the money, so it will lose value in the bank too. You could buy gold but I don’t think that’s risk free either.
Re: Investing in diamonds
Bit confusing. From lost 1, it appeared you were looking at this from “business POV”. in other words, as an investment. Typically when folks invest in something they have an expected rate of return. Higher there risk, more this expected rate of return - yo compensate for higher risk.
@stoppit why wont one get interest tron a bank? (I think this is related to religiion?)
@stoppit -2 yes gold definitely is not only not risk free. But a poor invesstment historically. Over last 150 yrs it hasn’t even kept pace with inflation. And this doesnt take into account further losses associated with jewelry.
Re: Investing in diamonds
Yes, I am assuming Hareem won’t try to earn interest on her money in the bank due to religious reasons.
Re: Investing in diamonds
I know…I was talking about the investment. But I guess, for the time being, I just want to save up the money either in a bank or in form of jewellery.
Re: Investing in diamonds
buy copper or silicon… demand only expected to grow
buy gold…
Re: Investing in diamonds
@ saab: did a google on copper prices.n
Historical Copper Prices and Price Chart - InvestmentMine
On Jan 1989, cu was $1.5 ( I forget the units - probably $/ounce).
In Jan 2004 it was about 1.2. So a loss of20% in 15 Yeats! It spiralled to 4.5 in 2007. Then slumped to 1.5 in 2009 post financialnbubble. Now it is at 3. Or 3% annual return with huge volatility. Not clear what is attractive about copper.
As for gold, as discussed earlier, it has not even kept pace with inflation last 150 years.
Re: Investing in diamonds
copper has real use unlike gold… and ‘electrification’ is only going to rise…so is solar technology…
Re: Investing in diamonds
I agree with all of the above. Gold has no use.
But there is also the issue of supply and demand. I don’t have data on copper reserves and their ability to meet demand. But cu is not a rare metal. Hence not much pricing power. The 24 yr data, at least to me, indicate there are better alternatives.
Since Cu prices are cyclical, it may make sense to the opportunistic investor to buy in the teeth of a downturn. As in March 2009. We are not in one now. And the expectation for growth in the economy appears to be priced in the cu spot prices.
Re: Investing in diamonds
Buying diamonds is not really an investment (at all) because it’s a controlled substance, not a rare one. It’s a company called De Beers who has a monopoly in the diamond supply and they regulate their prices-- they make diamonds scarce to raise the prices. A diamond itself does not hold a whole lot of intrinsic value , the idea of it being rare, beautiful, and pricey does.
A closer look: The History Of De Beers And Diamonds - Business Insider
Re: Investing in diamonds
^ a very nice link. I had no idea.
As for silicon here is 5 yr price history
MetalPrices.com - Free Silicon Price Charts
In 2008 $1.5/lb. Dropped to 0.5 / lb. Now around 1.5/lb. Nit exactly a barn burner.
Any way folks should do their own homework. And not base their decision on opinions in the internets.
Re: Investing in diamonds
That is not true for gold … You will find gold all over modern circuit boards and memory.
If you have 20 computers complete with memory sticks - you could recover may be 1.5 to 2 oz of gold. If you get each old computer for may be $50 you will need to spend about $1000 to recover double may be triple that in gold value.
Agreed about the copper part
Re: Investing in diamonds
ok..
invest or save, like outward. Make a little business cycle. For people like.. say my self. I would need to lot of learning. About people situations.
Possibility. Then finally I would invest a little on some one who wants to do some thing.
I would still have shocks here and there, but its all learning experience.
One good way is to always seek your investment back if not profit.
Re: Investing in diamonds
Oh right, ignore the article I linked first!
Re: Investing in diamonds
I want an one carat diamond ring, how much will it cost?
Re: Investing in diamonds
An informative article :k:
Re: Investing in diamonds
Informative :k:
The monopoly eventually ended.
Re: Investing in diamonds
Truly sorry. There was no intent to ignore. Your post 21 was what I saw. I may have skimmed over your post on p. 1. But did not click the link. ( I did concur with your assessment of gold! ).
I blame it on khatti. Seeing her entire post w/o spelling error on p 1 possibly threw me off!!