Diamond investment is a good option, even though some diamond and gold traders attempt to demean this facet of diamonds.

Still the most unmoving and stoic view of diamonds can’t overlook the following aspects: Tangible assets are regarded as secured assets all the more these days. Majority of securities, shares, bonds, insurances, etc have demonstrated in current era that they are pretty risky. Movable tangible assets are further fascinating and additionally unwavering than static assets. When gazing at the financial catastrophe in South-East-Asia in current year’s one thing is apparent: even though numerous real estate assets in Bangkok sank to 10% of their original value, diamonds, jewels and gold hiked up by nearly 100%.

As a general rule you can make out that during turbulent times, real estate dips down, whereas diamonds rise in value. Real estate is ever calculated in national stipulations; intangible assets are calculated in international stipulations. Consequently you can steer clear of the depreciation of the domestic currency with tangible assets. Diamonds are usually tax free, and you need not pay capital gains tax that makes diamond investment all the more worthy. As the cost for diamonds isn’t a free market price, but chiefly governed by the diamond syndicate, the price has been constant for almost an entire century. The price has been constantly rising for a century s with the exclusion of the years 1978 to 1980, acknowledged as the “diamond rush”. There is no other investment type that is as steady as diamond investment.

No other risk exists with diamonds. Currencies, resources, real estate, securities have all a certain degree of residual risks. Hypothetically a world war could bring down any currency, real estate can beat its value, new technologies can trade resources, competition can devastate companies, but nothing can alter the price of diamonds. Nearly all latent diamond mines are identified and with time diamonds will become atypical as any natural resource will. Diamonds are - collectively with superior artworks - one of the commodities that merge the use of the diamond with its investment characteristic. You can show off your diamonds as jewelry and in unison they are your most excellent investments. Diamonds don’t lose their worth. A good number of the other deluxe goods, such as cars, furniture, furs, etc go down in terms of their value over time.

Prospects with diamond investment

The diamond consortium around the De Beers group is still very imperative for the diamond price ruling, but it lost its domination pose. De Beers has a market share of nearly 60%, 40% are referred as “outside-goods”, diamonds from mines that work not in collaboration with De Beers. Recently budding markets in China and India have such an enormous prospective that the diamonds control the price of all other resources (oil, steel, coal, etc.) in that regions. India makes use of nearly one million diamond polishers. India polishes around 80% of the world’s diamonds. Indian export figures have been incessantly rising by 20% every year for the last 5 years. There is a huge demand for diamonds and the mines can’t generate as much as they could sell. The economy in India and China started already to boom and a new upper-class comes out which will enhance drastically the demand and the price for diamonds. Diamond prices have been escalating a lot in the past two years, but it’s not a pseudo price increase as it was in 1979. It’s a growth in demand of gem diamonds in the global market. It’s ambiguous whether De Beers will try to slow down the price expansion. If De Beers fails to stop the price boost, the diamond price could rise considerably in the next couple of years. Diamond investment seems to be on the cards for investors.