If the world falls apart, how can owning a rare diamond be beneficial to me... who buys colored diam
The question we have to ask ourselves is “what is money?” Money is several things or rather it serves several distinct functions. To simplify basic economic theory, money can be viewed as having two distinct functions. It serves as 1) a medium of exchange and 2) it serves as a store of value.
As a medium of exchange we currently use fiat currency (bills, coins and electronic versions of credit). But during hyperinflation or a currency collapse (that would be the conditions of "the world falling apart") the medium of exchange loses most or all of its value.
In that case, capital is moved from the liquid fiat currency to hard assets. Hard Assets are the second function of money; the store of value. Behind all this movement of capital in various economic times is one principle; protecting purchasing power. In normal times, fiat currency is just fine for protecting purchasing power. But when things turn bad, the only way to protect purchasing power is to move wealth from the medium of exchange function over to the store of value function of money. Store of value can include hard assets such as diamonds, gold, silver, food supplies, real estate etc.
In hard times all sorts of things become mediums of exchange such as food you grow or a skill or service you provide etc. The things that can be traded for something else so you can exist become the currency.
Hard assets do this too but they are usually held onto through hard times. They are the store of value or ‘ferry’ we use to carry our wealth across ‘the river of hard times.’ It is when a new currency is established in a new regime that those hard assets (store of value) can be translated back into currency (medium of exchange) often at greatly increased value. History has proven over and over again that wealth doesn’t vanish or disappear, it simply transfers from the uneducated person to the educated one. Therefore if ‘things fall apart’ economically, the poor and middle class may be wiped out but there will be an ultra-rich and ultra-wealthy class that will own hard assets such as gold, silver and natural fancy colored diamonds, as they will hold the wealth.
Natural fancy colored diamonds are an alternative hard asset investment that many investors are turning to because they are discreet and small; a multi-million dollar investment portfolio that fits into an envelope and contains no security numbers, no names and no registration requirements.
