Diamonds- not only beautiful jewelry, but also a great investment

In 2001 when De Beers’ monopoly supply over diamonds officially ended, many new companies entered the market place with substantial discoveries.  Today the largest site holders are Rio Tinto, Alrosa, De Beers, Dominion, and Petra, as well as many smaller companies. With more diamonds on the market, and with far less restrictions, the gemstones took on a new angle.  Historically, large investments have been made in precious metals, and today we are seeing this trend being applied to diamonds as of late.  In August of 2012, The United States Patent and Trademark Offices passed a patent that allowed diamonds to be classified as ‘Investment Grade’ for commercial trading and financial investments.  Soon after, Physically Backed Diamond ETF’s were listed under US Securities and Exchange Commissions.  However, unlike precious metals, diamonds do not have consistent prices, as there are a number of factors that influence their values; carat size, color, clarity, and cut, often referred to as the 4 C’s.  Though with the current decline in gold prices, it appears as though an opening for diamonds has come forward in the investment market place.  With China leading the way in this new form of physical assets, many other countries are catching on.  Annually, diamond prices have increased 8%-9% a year, and are expected to be available for trade on the NASDAQ Stock Market by 2014.  Hopefully this is the beginning of a new value and ideal for the diamond industry.


Information acquired from