If you have spent any time at all watching television, you have probably noticed the upsurge of advertisements for gold buying businesses. The economy experiences swings up and down over periods of time that can make precious metals and gems much more appealing to the investor. A question that comes to mind in regard to the best bang for the buck deals with gold and diamonds. What is the best option in a down market environment, diamonds or gold?

English: A picture I took on my senior trip

Diamonds are anyone's best friend, especially when they are on sale.

The answer can depend on recent history prior to a down-turn in the business sectors. During more prosperous times, records indicate that diamonds are more popular overall among jewelry and precious metal items. While being popular, diamonds are also more costly. Oddly enough, when the economy is in negative territory, diamonds will cost less; however, the opportunity to sell diamonds is diminished for obvious reasons. When those who usually would have money to pay for the diamonds in jewelry form or on watches, they are not in a position to do so at a time of low employment numbers.

On the other hand, gold has a very different opportunity. As a rule, gold is a liquid asset and can be sold daily in a market environment being traded. Buy gold in a positive or negative market atmosphere as a plus and asset to the investor. Commonly, those who trade gold on a regular basis find it a great hedge against a weak dollar that is indicative of a down economy. Comparing gold against diamonds, it is far better to make gold the investment for a diversified portfolio. Diamonds are always a wonderful purchase for gift-giving and showing love and devotion to family and friends.

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