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Feasibility of using Diamonds as an Investment Research Team | Updated On Saturday, September 27,2014, 11:30 AM

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Feasibility of using Diamonds as an Investment



There is no natural shortage of diamonds. Diamonds can be manufactured at much lower cost than the corresponding natural diamond price and the chemical and structural purity of a synthetic diamond can exceed a natural one. Diamonds are a difficult investment. While it is easy to buy a diamond, it is not easy to sell one unless one is already an established diamond merchant. Another problem for investors is that purchasers other than established jewelers will be paying retail for a stone but can get only wholesale at most if they sell it back to a jeweler. Some firms offer "investment-grade" diamonds for sale to the public. A careful investor should ask for a written promise to rebuy the diamonds at or near the purchase price within a specified period.

Today there are little funds that are investing in diamonds. These funds purchase unique diamonds (very large in size or color), each stone is checked by a few professionals and negotiated awaiting the fund decides to purchase it. Between 2007 and 2008 the price of a diamond from the top range of color, clarity, cut and carat went up by over 50%.


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