Making The Decision To Invest In Diamonds
In a time of volatile price inflation and recession economies, it makes sense to invest capital in longer term, more secure angles. Traditionally, precious metals like gold and platinum have filled this role. There is also an established trend of investing in art. For the same reasons, people may also decide to invest in diamonds.
Gemstones offer a longer term investment strategy because they last a long time, much like artworks and gold. They therefore offer the opportunity to store capital in a stable form during times of bad markets and soaring inflation. In the past, gems and jewelery have been used to transport wealth over physical distances, especially during emergencies such as wars and famines. Their small size also means that they are simple to store and carry.
Diamonds are in demand all over the world. 30% of authentic stones (that is, not manufactured synthetic stones) are used in the manufacture of jewelery, while the other 70% are assigned to industrial applications. This makes the stones a safe investment vehicle because there is always a market to satisfy the need for re-sale.
The advent of synthetic gemstones has not caused a large reduction in the price of authentic stones, and it is not expected to either. The same situation has arisen in the case of rubies, with no concomitant fall in price. Besides, the public has a penchant for the authentic stones as opposed to the synthetic ones.
Diamonds are not currently being traded as a commodity at a fixed standard price, but this is set to change soon. They should start being traded as such on the NASDAQ at some stage in 2014. This listing of the stones on a public stock exchange will make their price more standardized, and therefore ease their use as an investment option.
Because gemstones are relatively expensive, they require substantial capital to acquire. There is also a huge variety of stones for the potential investor to choose from. Any investor seeking long term stability should consider a move to invest in diamonds as an alternative to other long term options.
Gemstones offer a longer term investment strategy because they last a long time, much like artworks and gold. They therefore offer the opportunity to store capital in a stable form during times of bad markets and soaring inflation. In the past, gems and jewelery have been used to transport wealth over physical distances, especially during emergencies such as wars and famines. Their small size also means that they are simple to store and carry.
Diamonds are in demand all over the world. 30% of authentic stones (that is, not manufactured synthetic stones) are used in the manufacture of jewelery, while the other 70% are assigned to industrial applications. This makes the stones a safe investment vehicle because there is always a market to satisfy the need for re-sale.
The advent of synthetic gemstones has not caused a large reduction in the price of authentic stones, and it is not expected to either. The same situation has arisen in the case of rubies, with no concomitant fall in price. Besides, the public has a penchant for the authentic stones as opposed to the synthetic ones.
Diamonds are not currently being traded as a commodity at a fixed standard price, but this is set to change soon. They should start being traded as such on the NASDAQ at some stage in 2014. This listing of the stones on a public stock exchange will make their price more standardized, and therefore ease their use as an investment option.
Because gemstones are relatively expensive, they require substantial capital to acquire. There is also a huge variety of stones for the potential investor to choose from. Any investor seeking long term stability should consider a move to invest in diamonds as an alternative to other long term options.
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