But, why invest your own savings in the most precious commodity of the world?
Diamonds, as commodity, are a natural resource but they are also very rare, that’s why they are so precious! The world’s most famous investor, Warren Buffet, said he has never regretted having bought diamonds because they are a good investment!
Some figures: the average yield of a mine is 1 gram of diamond every 10 tons of rock extracted!
And only 1/5 of this gram (0,2g = 1ct) can be used in jewelry, the rest is diverted to industry for many different uses, but has no interest in gemology.
If we assume that this gem quality carat produced is available in a single crystal, we’ll get a round brilliant diamone cut of only half carat (0.50 ct)…imagine that only 5% of these gems produced has a weight greater than 1 carat!
If we resume: to obtain a gem you need to select about 60 million of rough stones…you still have doubts about the rarity of a diamond?
A recent Bain&Co. report commissioned by the Antwerp Diamond Exchange, shows that the average remaining life of the existing diamond mines is about 25 years and any profitable mine has not been discovered since 15 years. Considering that to open a diamond mine it takes about 10 years without knowing the quality of the extracted material. According to the most of official forecasts, the average growth rate of diamond prices (in US dollars) should be 6% per year until 2020 when it will come to a serious shortage of rough diamonds with steady demand and without considering the influence they will have on the market in the coming decades the new consumers demand in emerging countries … then, the diamond will be more than ever forever !
The advantages of the alternative investment in diamonds can be resumed as follows:
The disadvantages can be summarized as follows:
Write us to better understand the advantages and disadvantages of investing in diamonds: firstname.lastname@example.org