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Tuesday 13 August 2013

Rough Diamonds And The Need For Transparency In A Difficult Market

By Anthony Clark


A diamond remains one of the most breathtaking and valuable of the precious stones; however, reports have revealed that the demand will out do the supply. There are many long term production plans, but little progress has been made. It is important to determine the ways in which the rough diamonds market may be becoming more transparent for future investors.

Markets predict the ongoing demand for these stones as more people are showing interest in gaining profits within the diamond market. It has been regarded as a popular commodity associated with wealth and love. The trade has become more favorable for investors as these stones hold its value over an extensive period of time.

The reason more investors flock towards commodities such as silver, gold, platinum, and diamonds is because of the value it tends to hold when markets fall. More individuals are searching for ways to cash in on the market despite an inability for the supply to meet such expectations. Unfortunately it is this trade that is clouded by a lack of transparency that makes it difficult to serve as a real investment.

The diamond market cannot serve as the same investment opportunity as commodities such as gold and silver. It does not possess a uniform value because it is based on individual aspects involving the cut, color, clarity, and carat. These valuations are subject to the experience and expertise of an appraiser and a lack of a single price index.

The option to trade these stones on the retail market means that sellers are less likely to make a considerable amount of money. There are also many complications adding to the expense, value and having the diamond insured. Unless you have access to expertise in the industry, the outcome for investment could be devastating.

The problem with rough diamonds is finding a way to achieve market uniformity as a commodity investment. Companies have released information regarding the option to invest in diamond funds that may prove favorable for traders. Maintaining knowledge and seeking expert advise pertaining to the industry can aid in making the right investment.




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