Is it worth investing in diamonds instead of gold?

Diamonds are very different from gold. Gold is practically money and is therefore exempt from VAT. Its quality and thus its value are simple to determine. If you buy 999.9-purity, LBMA-certified gold and follow the world-market price, you know what your gold is worth.

Diamonds, by contrast, are not VAT-exempt and their value depends on many factors. They cannot be accumulated in small amounts because they are very expensive, and each stone's colour, clarity, size, and cut affect its price. The position is far from straightforward: an appraisal is necessary.

Both take up little space and can be sold worldwide, although I would classify diamonds more as expensive jewellery. In my view, investment gold is much more practical than diamonds for an ordinary person: it is VAT-exempt, its value is easy to track, it can be converted into money in many places and bought in smaller amounts, and it preserves value.

Own gold!