Each couple who purchases a diamond engagement ring will make different style and design choices, but most will agree that it is very likely the sparkles and designs really make the ring special.

Regardless of preference, they are most popularly worn with a wedding band, but can also be worn on their own.

Why Diamonds are more used for an engagement ring?

Well, it’s not exactly rocket science. Since diamonds are some of the most valuable items in the world, keeping them and displaying them is an important aspect of investing. When you possess such magical intrinsic worth, it is natural the desire to protect it should a conflict arise. With such popularity comes the need to consider issues of liability. Diamonds, being one of the most expensive natural items, imply a colossal level of intrinsic value.

But what does this have to do with property law? Does the notion of an insured asset with intrinsic value bring with it positive or negative implications? Is there a difference between a diamond ring and a job? Very briefly, the answer is yes and no.

The first aspect I want to address is the legal ramifications related to an insured asset with intrinsic value. You see, as diamonds are one of the most expensive and unique stones known to man, the common assumption is that the police will assume ownership if it enters their glove box. In order to explain further, I’ll first explain a more abstract concept of diamonds, as they are a visual vocabulary that has been around for thousands of years.

Making a Diamond

A diamond is simply very compressed carbon traditionally formed beneath the Earth’s surface over billions of years or high heat and pressure. The very idea of diamonds relies on the law of continuous value, which states that the value of an object or thing is not lost once it loses its intrinsic value. The interesting thing about diamonds, other than their intrinsic value, is that such a property couldn’t exist without legal protection. This is why property law is the mother of all concerns when it comes to diamonds.

It is usually assumed that using diamonds to conduct illegal activities bores the confiscatory police’s red ink. Therefore, they allow providing an insured method of storing this wealth.

Grants are much more expensive than the typical ring

While the average grant (the one you (or your partner) receive at the time of engagement) is worth around 2-3 months of salary, a diamond ring of the same intrinsic value can cost anywhere around 60-100 months of salary. The diamond ring is also more likely to be offered without any condition.

In an engagement ring, it is the lady’s finger that is the star of the show. With the current trend of diamond engagement rings, the ring maybe you would want to be passed on to a son or daughter. And so, although it is not the most cost-effective, diamonds are more suitable and secure to symbolize the love and honor.

Liability, a word found nowhere in the dictionary of a traditional banker, is an important word for the diamond merchant and merchant banker. The merchant banker, with long experience in the diamond trade, will naturally look at the potential of diamonds as an investment and will perceive liability in the form of risk.

Worth of Diamonds

A diamond that is worth N$200,000 (approximately $16,000) can be lost because of a variety of reasons, including theft, fire, or accident. The worth of diamonds is like that of banknotes, as they can be exchanged like currency. A wedding ring is an indication of a commitment, insurance of fidelity. In some societies, diamonds are valued more than gold. They have a history of being mined and treasured since ancient times. Diamonds are a symbol of all that is worldly, thus they appeal to the worldly and the materialistic.

If you decide to wear or carry diamonds, or if you are the one who owns them, you are responsible for their safety. You have to take the necessary measures to protect it because it can be swiped anytime. In the case of robbery, there is no institution or organization to take care of the losses. Therefore, determining the most effective level of protection is one of the most significant tasks to be carried out.

Are diamonds, as a legal investment, a risk that should be hedged?

As we know, just because diamonds are beautiful on their own, doesn’t make them not subject to confiscation. Proceedings related to concrete assets such as gold, silver, or oil can be far more problematic, as the Court must ensure that there is a “just economy” to keep order, effectively avoiding limitless value losses.

But knowing what action is best to take and what kind of diamond jewelry matters remains a commonly debated subject.