I’ve been in the jewellery trade in Sydney for over a decade, and if there’s one question I’ve heard more times than I can count, it’s this: “So, what’s actually worth more — gold or diamonds?”

You’d think there’d be a clear answer, right? But honestly, it’s not that simple. The value of diamonds vs gold depends on timing, purpose, sentiment, and even a bit of market psychology. And that’s what makes this topic so fascinating — it’s not just about sparkle or shine, but about what each represents in our lives and our wallets.

The emotional vs the practical side of value

Here’s the thing about diamonds: they carry emotional weight. Proposals, anniversaries, heirlooms — they’re woven into life’s biggest moments. When someone walks into my workshop clutching a diamond ring, there’s almost always a story attached.

Gold, on the other hand, is more like that dependable friend who’s always there when things get tough. It doesn’t shimmer with romance quite the same way, but financially? It’s rock solid.

When I first started appraising jewellery, I remember thinking diamonds would always outshine gold in terms of value. I mean, they’re rarer, right? But I quickly learned that rarity doesn’t always mean resale power.

Gold has something diamonds often lack — liquidity. You can sell gold anywhere in the world, any day of the week, and someone will buy it at a transparent, global market price. Diamonds? That’s where it gets tricky.

Why gold holds its value (and sometimes even grows)

Gold has been considered a store of wealth for thousands of years. Ancient civilisations used it for trade, and today, central banks still keep gold reserves to hedge against economic uncertainty. It’s one of those rare assets that seems immune to time and trend.

When global markets get shaky — say, during inflation spikes or financial downturns — people tend to flock to gold as a “safe haven.” That drives up demand and, often, prices.

In 2020, for example, when the pandemic hit and the stock market went haywire, gold prices surged. Investors turned to it because they trusted it more than volatile currencies. That’s the beauty of gold: it’s tangible, measurable, and universally valued.

Plus, in cities like Sydney, there’s a thriving network of Sydney gold buyers who make it easy for everyday people to sell or appraise their gold at fair market rates. It’s a straightforward transaction — you can literally walk into a shop, get a valuation, and walk out with cash. Try doing that with a diamond and you’ll quickly see the difference.

Diamonds: brilliant but complex

Now, I’ll be honest — I love diamonds. Their fire, their precision, the way a perfect cut can catch the light and throw it back like liquid lightning. But as an investment? They’re not as straightforward as gold.

Unlike gold, which is traded by weight and purity, diamonds are valued based on subjective factors — the famous Four Cs: cut, colour, clarity, and carat weight. Two diamonds of the same size can vary wildly in price depending on those factors.

What’s more, there’s no universal “diamond price.” Sure, there are industry guides like the Rapaport Price List, but those figures don’t guarantee what a buyer will actually pay. Retail markups, certification, and even consumer trends can sway things significantly.

And then there’s the issue of resale. Once you buy a diamond, especially from a retail store, it’s tough to get anywhere near what you paid if you ever try to sell it. Most jewellers will tell you straight — diamonds don’t appreciate in the same predictable way gold does.

The changing market: lab-grown diamonds and shifting trends

Something that’s really shaken up the diamond world lately is the rise of lab-grown diamonds. These stones are chemically identical to mined ones but can cost 50–70% less. Environmentally conscious buyers love them, and they’ve made diamond jewellery more accessible — but they’ve also disrupted resale values.

Think about it: if you can buy a flawless, ethically made diamond for half the price, why would a buyer pay a premium for a used natural one?

This trend has definitely affected the diamond vs gold value debate. Gold remains consistent, even appreciating as global demand rises, while diamond resale prices have softened in some markets.

Don’t get me wrong — if you’re buying a diamond for love, not profit, it’s worth every cent. But if you’re viewing it purely as an investment? Gold wins that round.

How to measure real-world value (beyond the sparkle)

Here’s a little reality check I give to clients:

• Gold value = measurable, tradable, and backed by market demand.
• Diamond value = emotional, subjective, and dependent on rarity and perception.

That’s not to say diamonds have no investment potential. High-quality coloured diamonds — especially fancy pinks and blues — have performed incredibly well in recent years, particularly those from Australia’s Argyle Mine before it closed in 2020. Those are collector’s items now, and their prices reflect that.

But for the average person holding a standard white diamond ring, the resale experience can be humbling. You might find it’s worth only a fraction of what you paid retail.

Gold, on the other hand, tells a different story. Even broken chains, single earrings, or old watches can fetch a tidy sum based on weight and purity alone. That’s why so many people keep their old gold jewellery stashed away — it’s a kind of secret savings account you can cash in when you need it most.

The psychology of ownership: why we value what we do

You know what’s funny? I’ve noticed that people rarely sell their diamonds unless they have to, but they’ll part with gold more easily. There’s something emotional about diamonds — they’re tied to memories, milestones, even identity.

Gold, by contrast, feels more transactional. It’s wealth you can hold, but it doesn’t usually come with the same sentiment. Maybe that’s why gold maintains such a strong presence in investment circles, while diamonds remain the language of love and celebration. The human side of this debate is just as fascinating as the financial one. Gold satisfies the head; diamonds speak to the heart.

So, which is the better investment?

Let’s strip away the romance for a moment and look at the facts:

• Liquidity: Gold is easier to sell and has a transparent market value.
• Stability: Gold prices fluctuate but tend to trend upward over time.
• Resale: Gold retains most of its intrinsic value; diamonds often don’t.
• Sentiment: Diamonds carry emotional and symbolic worth that gold can’t replicate.

If you’re thinking in terms of returns, gold generally outperforms diamonds. But if you’re investing in meaning, emotion, or legacy — diamonds hold a value that’s harder to measure.

For anyone genuinely curious about this comparison, there’s an insightful breakdown on diamond vs gold value that explores both sides from an investor’s perspective. It’s worth a read if you’re trying to decide whether to sell, buy, or hold onto your pieces.

A jeweller’s advice: balance both

If you’re building wealth through jewellery, the smartest move is to balance both assets. Gold provides liquidity and security; diamonds offer emotional value and prestige.

I often tell clients: keep your gold for investment, and your diamonds for sentiment. Don’t expect your engagement ring to fund your retirement, but don’t underestimate the comfort of having a few gold items tucked away for a rainy day, either.

And when the time comes to sell, do your homework. Work with reputable buyers who appraise pieces transparently and pay fair market rates. In Sydney, there are excellent professionals who’ll walk you through the process with honesty and respect — not pushy sales tactics.

Final thoughts: finding your kind of value

At the end of the day, value isn’t just about numbers. It’s about what something means to you. The diamond your partner proposed with might not appreciate in the stock market, but it might be the most priceless thing you own.

Gold might not sparkle like a diamond, but it can offer real peace of mind — especially in uncertain times.

I’ve learned that the smartest investors and collectors don’t just chase returns; they understand balance. They know when to hold onto sentiment and when to lean on strategy.

So, whether you’re comparing the diamond vs gold value debate for financial reasons or just curious where your treasures stand, remember this: true worth isn’t always measured in dollars or carats — sometimes, it’s measured in memories, resilience, and a little bit of shine that never fades.