Is expensive diamond jewelry a smart investment?
Purchasing an expensive diamond jewelry by spending heavily by a person, actually denotes his capacity to invest such a huge amount in jewelry. From the private view of the person who purchased the diamond jewelry, it may seem even a flagrant violation of his private right. After all it is his money. Perhaps it is his wish to fulfill the desire of his spouse who wants to have the jewelry at the expense of her own spouse. No one can question it or dispute it.
But when we consider the economic context, during which the purchase occurs, still we have many view points to put forth, though the purchase is purely a private business transaction of a person.
We have heard that ‘When Rome was in fire, its King Nero was fiddling a violin.’ When Rome was in dire state, people could not brook the utter callousness shown by its King. What people expected of him was to bail out Rome from its dire state of affairs. When we put the same view point vice versa, people cannot remain so callous when their own country is in dire state of affairs. They should do something useful for the cause of their own country to bail it out from its dire state of affairs.
In the same way, we can compare the incident of purchasing a expensive diamond necklace by a person in the present day context.
World is facing a crisis of heavy oil price hike and also the food crisis. In the US, people smarting under the heavy oil price hike, have turned to frugal ways of living and people’s life style has changed a lot. In India, the middle class has been worst hit, due to the increase in oil prices and gas. Reserve Bank of India has raised the cash reserve ratio and recently interest rates have been raised. Prices of all essential commodities have shot up. Therefore under the circumstances mentioned above, the Indian Prime Minister, Dr.Manmohan Singh realizing the plight of the Indian people has given some instructions to his cabinet colleagues to postpone foreign trips and to be austere.
Let us come to the purchase of expensive diamond necklace as an investment. No doubt it is a heavy investment and the entire amount of investment goes to the coffers of the diamond merchant. No one else except the diamond merchant and the spouse of the investor are benefited out of the investment. In the context of the financial crisis in which our country is in, whether it be US or India, investing in an expensive diamond jewelry is not a good idea at all.
On the other hand, if the amount is saved in a public sector bank, either in a fixed deposit or in any other kind of time deposit, the amount will not only serve the cause of the nation and indirectly be helpful to our fellow human beings, besides fetching a reasonable amount of interest to the investor. While investing in an expensive diamond jewelry, it is not actually an investment, but only a spending which is beneficial only to the diamond merchant. Whereas investment in the form of a deposit it serves and benefits both the investor and the bank where the amount is invested and also indirectly our fellow human beings.
Therefore, investing in an expensive diamond jewelry is not a smart investment at all!