Gold and diamond are two of the
most precious metals in the whole world. They both operate with various
transferring mediums like online trading or sale and purchase through market
conditions. The prices of gold and diamond depends on the fluctuations like
economic booms and state of recession. As we all know that gold and diamonds
are present with their limited reserves. However, the market of diamond is not
that developed as the market of gold. Both holds their own distinctive features
which differs their renowned presence in the running market. They are owned by
the peoples because of their inherent and special qualities.
If talking about the market for
diamond, the demand of diamond might get affected by the investable market for
the gems. Reason being that the industry has faces the huge success of Gold
Exchange Traded Funds (ETFs), SPDR Gold trust etc. This has created an envy
type of relations among the two. With this reason, the one who favors diamond
in spite of gold want to see ETFs for this transparent metal or with various
other ways where diamond can be used as an investment.
On certain notes gold and diamond
share several similar characteristics:
- They both have high artistic value.
- They relatively hold the features of easy to transport.
- Last but not the least, available in limited reserve.
- Apart from their characteristics, they are also very different from each other in the ways:
- They both are not homogenous. Prices of a stone of the same sizes may vary on their color, clarity and quality of the cut. Thousands of other categories do follow these differences.
- Gold and Diamond decline in their value when they both are divided.
- Gold do not produce sufficient value to be used as a currency on the other hand diamonds do not have spot markets for their proper sale and purchase.
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