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.
Diamonds are in demand all over the world. 30% of authentic stones (that is, not manufactured synthetic stones) are used in the manufacture of jewelery, while the other 70% are assigned to industrial applications. This makes the stones a safe investment vehicle because there is always a market to satisfy the need for re-sale.
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.
At this time gemstones are not traded as a commodity at a fixed price, like oil or platinum. However, planning is underway to include them as a publicly traded commodity on the NASDAQ exchange in 2014. This move should go a long way towards regulating the price of the stones.
A large capital outlay is needed to invest in diamonds. Each investor also needs to establish the nature of the stones that they should buy. Gemstones offer a relatively more secure investment in a volatile recessionary economy.
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.
Diamonds are in demand all over the world. 30% of authentic stones (that is, not manufactured synthetic stones) are used in the manufacture of jewelery, while the other 70% are assigned to industrial applications. This makes the stones a safe investment vehicle because there is always a market to satisfy the need for re-sale.
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.
At this time gemstones are not traded as a commodity at a fixed price, like oil or platinum. However, planning is underway to include them as a publicly traded commodity on the NASDAQ exchange in 2014. This move should go a long way towards regulating the price of the stones.
A large capital outlay is needed to invest in diamonds. Each investor also needs to establish the nature of the stones that they should buy. Gemstones offer a relatively more secure investment in a volatile recessionary economy.
About the Author:
Diamonds as an investment offer a great way to protect and preserve wealth in our current economic environment. Visit IDX today to learn howdiamond investment can add diversity to your investment portfolio.
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