Today's economic environment is characterized by high inflation figures and recession economies. At a time like this, it is a good idea to sew some capital up in long term, stable investments. One way of doing this is to invest in precious commodities like gold or platinum. Art can also be used to store value in this way. In a similar fashion, some people have decided to invest in diamonds.
Gemstones are a durable asset, like precious metals, so they can be used as part of a long-term investment portfolio. They offer protection against inflation and collapsing markets. They have also been used to transport value in a compact form. In fact, their diminutive size makes them very easy to store and keep safe.
Gemstones are traded on an international level. 70% of authentic stones (that is, stones not produced artificially) are used in industry, while the remainder are bought by the jewelery sector. The gems may therefore be re-sold to an existing market once they have served their purpose in an investment strategy.
Synthetic gemstones are not expected to have a substantially negative impact on the price of the stones. As an example, rubies are also manufactured artificially and this has not destroyed their price. Customers have a preference for authentic gems, and synthetic ones may even be considered unacceptable socially.
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 the stones are so valuable, it takes substantial capital to invest in diamonds. The potential investor also needs to do proper research on which stones will be suitable for the investment agenda at hand. In seeking stable value over a long period, gemstones provide a sparkling alternative in a tough recession environment.
Gemstones are a durable asset, like precious metals, so they can be used as part of a long-term investment portfolio. They offer protection against inflation and collapsing markets. They have also been used to transport value in a compact form. In fact, their diminutive size makes them very easy to store and keep safe.
Gemstones are traded on an international level. 70% of authentic stones (that is, stones not produced artificially) are used in industry, while the remainder are bought by the jewelery sector. The gems may therefore be re-sold to an existing market once they have served their purpose in an investment strategy.
Synthetic gemstones are not expected to have a substantially negative impact on the price of the stones. As an example, rubies are also manufactured artificially and this has not destroyed their price. Customers have a preference for authentic gems, and synthetic ones may even be considered unacceptable socially.
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 the stones are so valuable, it takes substantial capital to invest in diamonds. The potential investor also needs to do proper research on which stones will be suitable for the investment agenda at hand. In seeking stable value over a long period, gemstones provide a sparkling alternative in a tough recession environment.
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