Gold vs. Diamond: What is the Difference?
You can assess the worth of a stone by its rarity. If a stone happens to be rare in the market, it will have skyrocketing prices, but if it’s quite common and readily available at the local stores, then you can buy it at a cheaper rate. However, in the case of diamond and gold, it is quite the opposite. Diamond is much less rare than gold, but it is much more high-priced than gold is. Diamond is obtained after a painstaking and sometimes an unsuccessful mining process. It is possible to create synthetic diamonds from graphite in laboratories, unlike gold.
There is no set price for either of these because their demands keep fluctuating throughout the year, and their costs represent their demands; if their prices are sky-high, they are highly sought after these days and have expensive price tags.
The mining procedure of diamond is very risky and does not always guarantee that you will even get some amount of diamond, let alone a good quantity.
The latest research by Brightside tells us that gold is ranked as the 15th most expensive material on Earth, whereas diamonds come 3rd on the list. The difference of twelve ranks between the materials speaks volumes about their worth!
How Are Diamonds Used and Where Are They Valued?
Diamonds are actually highly pressurized carbon that is found in the Earth’s crust. Diamonds come in colored and non-colored forms but are unattainable because they are insanely expensive. Did you know one gram of gold can cost more than five thousand dollars?
The Gemological Institute of America (GIA) assesses the quality of diamonds and then ranks diamonds accordingly. Diamonds are an extremely popular commodity in the luxury jewelry market. The quality of a diamond is evaluated on four factors that are known as “The 4 Cs”. The Cs corresponds to clarity, carat, color, and cut. If any three of these characteristics have really good quality, the diamond prices will shoot rapidly!
Furthermore, diamond prices also vary because of some factors, such as its shape and how it reflects light. For example, a diamond with an excellent cut and transparent color will have an exorbitant price compared to a diamond that doesn’t have a good finishing and has some unwanted color on its surface.
One gram of diamond is almost five carats. Carat is a measure of the purity of a material. One carat’s starting price is thousand dollars and can range up to tens of thousands of dollars.
A diamond is also valued on the basis of its certification. The certification provides authenticity to the diamond and influences its value and price. In addition, certification makes it easier to differentiate between real diamonds and fake diamonds (lab-created ones.)
Assessing Value of Gold
Gold is considered to be a form of currency, which means its value and pricing fluctuate with the world’s currencies. You cannot replace gold with cash, but you can certainly sell it for some money, and this is why it is thought of as a good investment. Unlike diamond, which is only used in luxury jewels, gold is used to manufacture some electrical and medical devices such as gold bonding wire, hybrid inks, solders, and sputter targets.
Karats and purity measure gold. 24K gold is known to be the purest form of gold, but usually, when manufacturing gold jewels, some amount of metal is added because only pure gold is really soft. So gold jewelry is measured by its ratio of gold to metal.
There are three main drivers of gold: mining, demand, and investment requirements. Since the last decade, the demand for gold has massively increased, resulting in the appreciation of about 450% in gold prices!
Which Of Them Is Better in Terms of Investing?
Both of them are valuable assets and can benefit you in the future. These precious stones guarantee good returns later in the future. Some factors that cause gold and mineral prices fluctuation are natural disasters, economic conditions, and wars.
For gold, the prices are high when there is economic stability, and the crisis is at a low. On the other hand, diamonds’ prices seldom deprecate. They are independent of the world’s economic crisis; hence diamonds are a safe and an exponentially better choice for investment. For the last couple of years, it has been noticed that the price and value of a diamond are appreciating, especially if that diamond ticks off all the conditions of the 4 Cs. Even the demand for diamonds has increased dramatically in recent years, and if you notice the trend, you can easily predict that the market will not go down in the near future. So, the bright side is that if you are buying these gems for resale, you can be confident about getting a good sum of money in return for these stones.
Another advantage of a diamond is that it does not take up a lot of space. It’s small, delicate, and can easily fit in one of your jewelry pouches! These gems are also durable, which gives them an edge over gold as gold is more likely to break down and fade in color.
However, don’t make a decision in haste and do your research properly before investing in either of these stones. As mentioned before, investing in both will not necessarily mean that you will get the same outcome. Gold is easy liquid money as compared to diamond. Gold prices don’t depend on inflation, and hence its value is retained for a longer time, which is an added advantage. You can purchase gold bars or coins today and wait for the day to sell gold when its prices increase dramatically. However, investing in gold is just like investing in a commodity, and as an investor, you won’t be able to control the prices of gold. On the other hand, if you invest in a top-class, 4 Cs category diamond, you will have a valuable asset that people will cherish.
Comparing The Worth of Diamond and Gold
The worth of diamonds and gold depends on several factors. We have explained these factors in detail, which are mentioned in the table below:
|Gold prices directly depend on the economic conditions, and in some parts of the world, it is considered a form of currency.||Diamonds are not considered a form of currency, and their prices do not vary with the world’s economic conditions.|
|Gold is thought of as a safe investment. And that is true because it is known to resist the adverse effects of inflation.||Diamond has more resale value, and that factor shoots up its worth drastically. So just make sure you evaluate a diamond based on the 4 Cs approach before buying it.|
|Gold is less expensive but more worthy than diamond because it is considered a form of currency and is considered a valuable asset.||Diamonds are many times more costly as compared to gold.|
|Storing gold is a problem. It would help if you found lockers to store your gold bars and coins.||Whereas diamonds can be easily kept in small jewelry boxes.|
Are you done making your choice? So, what are you going with, diamond or gold? Still confused? No worries! Remember that diamond has a higher resale price than gold, and gold carries power even when inflation is on the rise. If you still have trouble being 100% sure about your decision, you can always talk to jewelry experts who can guide you better with your jewelry shopping-related questions. Whatever you choose, just be assured that both of these stones are safe choices in today’s era because these gems are the most hottest options available for investors!