Buying diamonds is expensive but fails as an investment

04-Apr-2026

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Diamonds, long symbols of luxury, often lose value sharply upon resale, unlike gold which holds steady. 

Diamond prices have recently hit century lows due to factors like branding costs, lack of transparent pricing, and poor resale markets. The rise of affordable lab-grown diamonds, identical to natural ones but much cheaper, has disrupted traditional supply controls and weakened natural diamonds' value. 

Younger consumers favor these alternatives, viewing diamonds more as consumption rather than investment, contrasting with gold's strong store-of-value status.