Diamond Jewelry As an Investment
Today, even with the economic situation in the US and around the world marked with uncertainty, the leaders of the trade industry expect the diamond market to remain firm and steady. A survey that was recently taken in the US has found that women would prefer to cut their spending in other areas like home goods and clothing, but still receive their diamond jewelry for the holidays. Diamonds are divided into two types, white which are transparent or colorless, and colored which are natural colored diamonds. The abnormality of colored diamonds makes them much more valuable than white ones. For example look at the 12 carat citrine and diamond ring that Zack Kehayov gave to Tara Reid. It is estimated to cost about $25,000. Zach picked a citrine to represent her birthstone which is a popular trend now.
Diamonds are not like liquid assets like in conventional investments, in these difficult economic times it is important to focus more on the conserving money and less on pricey investments, but colored diamonds offer a particular source of value for those who chose to invest in them.
Other investments that are similar to diamonds during this economic struggle are art, and wine. A great investment in the arts was Picasso’s painting Nude, Green Leaves and Bust. It sold for over 107 million at an auction. The oil painting became the most expensive artwork ever sold. The demand from the east has swayed the fine wine industry. Last month the index which tracks the price of Bordeaux reds from 24 chateaux, increased by 5.5% this was a consecutive monthly increase of 12 months. The index gives an annual return of 28%.
The only thing that would slow down production and sales would be a lack of supply in the diamond industry. One of the world’s biggest diamond companies has said it will cut production of diamonds in an attempt to protect the industry from surging demand in the east. It is estimated that by the year 2016, that China will account for almost 16% of the diamond market. If there was ever a global slowdown in production, diamond funds seem to ready.
Unfortunately, no matter how aggressive the industry is, it all depends on the customer. Although the extended view remains positive for growth in the East and a good recovery in the U.S., the wholesale and retail markets appear to be more muted than hoped for before the Christmas season kicks off in the U.S. In addition to a slow market, jewelry retailers are faced with rising price of gold, which continues to set new highs. For the first time ever the price of platinum has surpassed the price of gold. If these high gold prices continue, it will change the outcome on the entire jewelry industry. Consumers may switch to other cheaper metals, such as silver or palladium, which are less suitable for diamond settings. diamond painting tiere