Sunday 1 September 2013

Why Investors Are Calling For Transparency In Rough Diamonds Markets

By Anthony Clark


The diamond has been regarded as one of the most beautiful of all the precious stones. The increase in the demand for such assets has been clouded by the fact that supply will begin to taper off in the future. The longer term plans put in place are slow in its progression leaving investors without the necessary transparency in the rough diamonds market.

The long term demand for these stones means that investors are continuously searching for ways to achieve profits in this industry. The particular commodity has been a symbol of wealth and love for decades. This trade is most desirable because it offers greater value for investors over a projected period of time.

A larger number of investors are moving towards this particular asset as it tends to hold its value when the economies are experiencing a slump. For these reasons people are considering cash injections into the industry as a result of future limited supply and value increases. The limitation is the lack of transparency and the options available for 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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