Tuesday 12 January 2016

Is Investing in Diamonds a Good Choice

Is Investing in Diamonds a Good Choice

[Brian O’Connell]

The global diamond industry can be a hard sell for investors.

The sector is notoriously for its lack of transparency, making it tough for investors to judge risk factors and analyze profit opportunities. Getting accurate, up to date pricing isn’t always easy, which further complicates investment decisions.

That said, there’s also an abundance of opportunity for diamond investors, especially as prices lag in 2015 (they’re down anywhere from 11%-to-15%, depending on which analyst you believe.)

A look at the Zimnisky Global Rough Diamond Price Index shows that, by and large, global diamond pricing has been positive over the long-term. 10-year growth stands at 40%, and the industry was stable through the first half of 2015, although the industry has experienced a slow down in the previous six months.

With those thoughts in mind, are diamonds an investor’s best friend in 2016?

Read more here to find out a few issues to be considered.