Boy meets girl, girl meets boy. It’s the oldest story in the book and one that is deeply ingrained in our society. For many, the happy end culminates in a couple getting engaged, which is where buying a diamond ring comes in.
Today, it’s not just in America that buying a diamond engagement ring is mainstream. The tradition of an engagement ring is becoming much more prevalent in China too. A diamond ring is a symbol of love that is long lasting – a love as eternal, clear and beautiful as a diamond. Sometimes young men even go into debt to buy a diamond for their beloved and that in itself is viewed as a sign of their commitment.
It might seem as if the woman has all the joy from the diamond and the man just bears an enormous financial burden. But I believe that for the giver, diamonds don’t only have to be about the expense. In this case, giving can also be about receiving.
In my article last week, I wrote about how men and women equally, stand to gain from the purchase of a diamond and about how I believe that this isn’t just about women. We have moved on from the phrase Diamonds Are a Girl’s Best Friend.
I call my philosophy about diamonds the Crystal Clear philosophy and I take the view that when a man buys a woman a diamond, he is not merely spending in order to make someone else happy. In buying a carefully selected precious diamond, he has transferred cash into an asset for the couple to treasure.
“Owning possessions that are financially valuable, emotionally pleasing and culturally significant is a timeless tradition and one that shows no signs of abating,” said Thomas L Kalaris, chief executive of Barclays Wealth and Investment Management and executive chairman of Barclays in the Americas, in the company’s 15th Wealth Insights report.
In order for a diamond to embody both love and long lasting financial value, there are several criteria that need to be met. The buyer needs to fully understand a diamond’s characteristics and all its irregularities. He needs to buy the diamond at the right place – buying diamonds at retail prices when thinking about long-term investment won’t work. He also needs to take professional advice when selecting the diamond.
I believe that an educated approach to buying diamonds, which incorporates planning for wealth preservation, shouldn’t stop at the purchase of bridal jewellery. Taking wealth preservation into account when buying diamonds in this way can continue on throughout a person’s life whenever they choose to buy diamonds – whether to celebrate the birth of a child, a promotion at work, an anniversary, a birthday or simply to treat oneself.
The intrinsic financial value of diamonds holds the potential to last a lifetime and beyond. When these diamonds are passed down to the next generation, once again, they will embody both love and long lasting financial value.
The views expressed here are solely those of the author in his private capacity. No one should act upon any opinion or information in this website without consulting a professional qualified advisor. Nothing on this website can be construed or constitutes an offer or a recommendation to sell or to purchase diamonds or the solicitation of an offer to purchase any diamonds, nor does it constitute an offer or a recommendation to sell or to purchase any security or financial product. Diamond prices are influenced by consumer demand and changes in local, regional or global economic circumstances could adversely impact overall diamond prices and the ability to dispose of them. Diamonds do not produce income, and the holding of diamonds will carry expenses such as storage fees, transportation fees, and insurance. The ability to dispose of a diamond depends on finding a willing buyer at a particular point in time. Therefore, the ability to realise the cash value of the held asset may be difficult or take a long period of time.