Diamonds Shine As Nature's Masterpiece And Savvy Investment Choice

February 14, 2024

By: Margaret Jackson

“Diamonds aren't just a girl's best friend; they're nature's dazzling masterpiece.

From the sparkle that captivates hearts to their resilience, diamonds are more than a symbol of luxury. They're a testament to the beauty and strength found deep within Earth's crust and formed under intense pressure and heat.

But diamonds are more than a gemstone used for adorning royal crowns or declaring undying love; diamonds are increasingly viewed as a smart investment.

"With bank and crypto failures and inflation, I definitely see more interest from clients who are thinking of jewelry as a store of wealth," Lee Siegelson, who specializes in vintage pieces and rare stones, told the RobbReport.

The global diamond market was valued at $96.4 billion in 2022 and is expected to grow at a compound annual growth rate of 3.2% from 2023 to 2030, according to Grand View Research.

Diamond prices are expected to rise as the supply becomes tighter. Diamond producers halted mining activity during the pandemic but came back in full force last year and over produced diamonds, resulting in prices plunging.

But the supply is expected to diminish, especially since the G7's ban on Russian diamonds, which could cut 30% of the world's diamond supply, Diamond Standard CEO Cormac Kinney told Business Insider. With the drop in supply, Kinney predicts prices could climb 5% to 10% this year.

Investing in diamonds and other gemstones is a growing trend, with top brokers indicating that more clients have been looking to invest in jewelry and loose gemstones. Experts recommend investing in D-flawless diamonds of larger stones of lesser quality. D-flawless diamonds, a rare designation, have continued to rise in price. An f-color VVS1 diamond of similar size might look the same as a D-flawless, but it's worth 30% to 40% less.

Investors own just 1% of the diamond market compared with 32% of the gold market, 19% of the sliver market and 17% of the platinum market, according to Allied Market Research.

But not everyone can afford to invest in precious gemstones, and for those who can't Diamond Standard Co. created Diamond Standard Coins and Diamond Standard Bars that contain a certain number of diamonds. The value of every coin and bar is equal to all other coins and bars created at the same time.

By doing this, Diamond Standard has made diamonds fungible, allowing investors to trade diamonds just like they would gold, stocks or any other asset. This could result in diamonds becoming listed on commodity indices.”

SOURCE: Yahoo Finance

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