Diamonds are beautiful gemstones that have been in existence since the time of our ancestors. They are precious stones that have now scored high in value and are in great demand as compared to older times.

Discovery of Diamonds:
Diamonds were discovered some two and a half millenniums ago. Although the financial potential of these stones was realized during ancient times as well, the usage of these stones was limited with making ornaments for the Gods and Goddesses and decorating the deities. Indians especially used diamonds for adoring the beauty of their religious deities and prized diamonds as gemstones. Hence they were cherished as gemstones many years ago.

Increasing Popularity of Diamonds:
Diamonds have started gaining vast popularity since the 18th century. After the great industrial revolution during the 1800s, the civilization realized the alternative usage and the true value of diamonds. Diamond jewelry has become quite popular these days and has given rise to an entirely new industry. The prices of diamond have been surging high as a result of the increasing popularity of diamonds on one hand and the limited supply on the other hand.

Commercialization of Diamonds:
After the industrial revolution, people and industries realized that using machinery and technology, diamonds could be mined faster and thus, the limited supply of diamonds could be increased by the way of excavation and mining. Technology also helped in quick cutting and polishing of diamonds. As a result, it became easy to start the commercial use of these diamonds.

Limited Fungibility of Diamonds:
The commercial use of diamonds and dependence on it is limited, especially during the time of financial crisis because of the fungibility aspect associated with diamonds. Diamonds are not capable of mutual substitution. Diamonds cannot be used as sole and mainline source of investment during the times of economic turmoil and downturn. The liquidity value associated with diamonds is little below as compared to that of gold or silver. Hence, you should invest in diamonds right during the period when we observe hyper inflation.

Thus, the investment value of diamonds has been ever increasing. Not only has the investment value increased, but the usage of diamond has also greatly changed. Right from being used as gem stones, diamonds are now also used as cutting tools in various industries and are used as precious jewelry items. The gift value of diamond has also increased and diamonds are greatly appreciated as gift items.