Diamonds are trumps as price of gold wobbles
Some mainland investors are eschewing gold as a long-term store of value and going for something that is more stable - and wearable
Tan Jun has kept a cool head as he watched family and friends rush to buy gold bars and jewellery over the past month in the hope of benefiting from the slump in the price of gold.
In the view of Tan, an e-commerce businessman in Guangzhou, there are better choices than gold when it comes to combating inflation.
"Gold is still too risky for a prudent investor like me. I prefer diamonds, which enjoy a more stable return," Tan said.
Tan, 33, was introduced to the attractions of buying diamonds in a big way last year when he set off to buy an anniversary gift for his wife and ended up making a serious investment by buying a one-carat top-quality diamond for 150,000 yuan (HK$189,000) from an online shop.
"I had bought some diamond necklaces and rings for my wife before, priced at 10,000 to 20,000 yuan," Tan said. "Then I realised diamonds can also be a good option when it comes to trying to preserve value. The better the stone's quality, the higher its future value could be."
I realised diamonds can also be a good option when it comes to trying to preserve value. The better the stone's quality, the higher its future value could be
Over the past nine months, the market price of stones of a similar size and quality has grown around 10 per cent, Tan said. "Now I'm considering making a regular investment and buying one stone every one or two years."