Investing in Jewelry - What is a better Investment Buying Gold or Diamond

Today, I am writing this article especially for people who are looking forward to investing in jewelry and are stuck between buying gold or diamond. This is my personal experience which I am sharing with you but the below listed price and percentages are for informational purposes and not the real ones. So if you are going to invest in jewelry, I would recommend you to invest in gold instead of diamonds as diamond’s resale value is always less than gold. Now read how.

No Returns of Investing in Diamond - Rather Depreciation

For example, you purchased a diamond necklace for 3000 dollars two years back and you go to the same diamond jeweler for exchange for getting a new one. The jeweler will simply deduct the 10% for labor charges and wear and tear from original bill at the time of purchase. Also, diamonds can be studded only in 18ct gold which is 75% less than 24ct or 22ct, both are used for making pure yellow gold jewelry. Also, if you are having more diamonds and less gold in your necklace, expect a 5% to 10% depreciation on old diamonds. Now what happens is that the diamond jeweler will straight away deduct up to 20% from your original purchase and you will be getting in hand only 80% that is around 2400 dollars. Now for buying another diamond necklace of the same size and quality, you have to invest another 600 dollars, so there is a depreciation of 600 dollars and no returns of investment.

Indian Traditional Jewelry - Aishwarya
Indian Traditional Jewelry - Aishwarya
Gold bars pic
Gold bars pic

High Returns of Investing in Gold

Now lets take an example of your yellow gold necklace.

You purchased the same at 3000 dollars two years back and at that time the rate of 10 gm of gold was 300 dollars and now it is around 400 dollars, then you will visit your jeweler, he/she will deduct 10% for labor charges and wear and tear from original bill at the time of purchase and will give you 90% according to the present gold rate which will be around 4000 dollars minus 10% (400 dollars) and you will be getting 3600 dollars. Now what you got here, you got an increment of 600 dollars in two years on your gold necklace.

Yellow gold necklace
Yellow gold necklace

Now what do you think is a better investment option, gold or diamond?

Would you go for 600 dollar depreciation in two years on your diamond necklace or 600 dollar increment in your gold necklace in two years? Yes, I know you want to take the gold route and that’s why every smart jewelry investor has been doing.

Rhodium plated gold touch necklace
Rhodium plated gold touch necklace
Turn yellow gold necklace into white like studded with diamonds with Rhodium plating.
Turn yellow gold necklace into white like studded with diamonds with Rhodium plating.
Turn yellow gold into white
Turn yellow gold into white

Also Turn Yellow Gold Look Like a Diamond without Buying a Diamond

For women fond of diamonds and wanting to invest in gold at the same time, the option is turning their yellow gold look like a diamond and that can be done by simply getting rhodium plating on yellow gold done by your jeweler. Rhodium can be electroplated on gold jewelry. It looks like white and bright chrome plating. You can view the “rhodium polish on yellow gold pics” on the side. For your information, rhodium is very expensive metal and is around 10 times the cost of gold, but it is plated so thin on your jewelry that the price is not a big deal. Rhodium plating is not so expensive and saves you hundreds of dollars on your investment plus enhances the appearance of your gold jewelry by giving it a diamond-like glitter and truly shiny look. So go ahead and invest in gold and get the rhodium polish done on it if you want a diamond-like look.

Gold TO HIT $5000.00 By 2012? Dollar Never RECOVERS?

More by this Author


Comments 22 comments

DonnaWallace profile image

DonnaWallace 6 years ago from North Carolina

This is a very helpful article on purchasing gold or diamond jewelry. Thank you!


soni2006 profile image

soni2006 6 years ago from New Delhi, India Author

It's my pleasure DonnaWallace. These are my own tips that I learned from my practical experience of buying and selling gold and diamond jewelry.


sweetie1 profile image

sweetie1 6 years ago from India

Thanks soni..it is nice hub and a lot of thought has gone in to it and yellow metal would always be beautiful.


soni2006 profile image

soni2006 6 years ago from New Delhi, India Author

Yes, gold will always be the better investment option in jewelry than diamond. Diamonds also look beautiful but not beneficial for investing.


Georgina_writes profile image

Georgina_writes 6 years ago from Dartmoor

Interesting hub, you should do well with this one, especially with all the interest in gold right now.


soni2006 profile image

soni2006 6 years ago from New Delhi, India Author

Thanks a lot Georgina_writes. I appreciate your visit and comment.


prakash 5 years ago

buying diamond or gold is not a wise invesment.

give vgood education .ie is our good invesment.

investing in mettel it is camling


soni2006 profile image

soni2006 5 years ago from New Delhi, India Author

Yes Prakash, I agree that giving good education is best investment but here we are talking about commodities as investment.


Dazzling Image 5 years ago

Thanks for sharing this precious piece of information.You have been very detailed. It helps us make wiser investment decisions in the long run.


soni2006 profile image

soni2006 5 years ago from New Delhi, India Author

Thanks for your review of this article Dazzline Image.


Goldie 5 years ago

I like the article on Rhodium plated gold. A very good advice for people who want a good investement and also a diamond like look in their jewelery. Thank you.


karan 5 years ago

hi bought a pair of diamond earings for my wife for 12 lakhs. we were given the bill and also all certificates. i bought them at mumbai and took them to indore. my wife liked them to she had another piece in mind which was for around 10L she had seen in mumbai at a different store. i went to return the set to the same store i bought it from a week later and he offered me 11L. i told him it is only a week and you are deducting 1L??? should one never invet in diamond jewellery? thanks


Pankaj surve 4 years ago

Diamonds are only to express our heritage but not for investment so gold is good for investment. one day will come when 10gm gold will be cost around 50,000 rs and i think so it should be 50,000 because it is gold not a plate or teaspoon


Certified Gold profile image

Certified Gold 4 years ago

Great Information Soni! Keep up the good work!


Breverouse Mecz profile image

Breverouse Mecz 4 years ago from USA Nevada

This article is very interesting about jewelry. Thank you for sharing an inspiring idea Mr.Soni. Keep up the good work!


vidhimayur profile image

vidhimayur 4 years ago

Very informative hub. Thanks for sharing.


Mustafa Ghulush 4 years ago

tnk u for ur useful info i got a good idea from ur info ihv a project investment on gold now it can help me to do ma project..


neha 4 years ago

I hv also purchsed a yellow gold set with rhodium polish in between. But people say that it will become black in few months. is it so?


Neelu 4 years ago

Hi Thank you for your good suggestion. It helps for me.......


soni2006 profile image

soni2006 4 years ago from New Delhi, India Author

No whoever says rhodium polish gold will turn black does not know about the gold itself. Gold never turns black unless it is of very poor quality,


SOUMYA 3 years ago

thanks for the information. But you havent taken into consideration the increase in 18kt gold and diamond prices in your calculations.


soni2006 profile image

soni2006 3 years ago from New Delhi, India Author

Okay Soumya. I will check it out friend.

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working