A FEASIBLE INVESTMENT:
Diamonds as an investment venture are actually very safe. Although they are
not sold as per gold and silver in an open global market on a public exchange, the prices of diamond as an invest commodity have risen sharply over the last few years. Exploring periods for which enough transaction data is available, researchers have found that diamond had a return of nearly 7-10% between 1999 and 2010 on investment ventures. Although diamond prices have gone through periodic busts due to global economy slowdown, it has not really affected returns on investment ventures of individuals.
A GOOD TIME TO INVEST:
If you are thinking of investing for a long term cause, now is a good time as any to put in some dough in the diamond asset. Fearing a downturn in the global economy won???t help as this is a risk worth taking. As prices are comparatively lower compared to other investment commodities, it is the perfect time to invest in diamonds. Although New York based Rapport Group suggests that the market is an unsteady one, with respect to the long-term cause diamond is as good an investment as any. Expected demands from middle class families in the East Asian countries may just be the stimulant to push up diamond prices and enhance returns on the product. Although polished and rough diamonds lack the desired fluidity of investment and there is a chance of synthetic diamonds entering the market, real-time investment grades have not really been affected by the same.
RISK FACTOR TO BE NOTED:
Although diamonds are touted as the biggest investment venture for the near future, the only drawback associated with the product is the lack of an established mechanism to immediately know the price of diamond in the global market. This gives an opaque nature to the diamond market and trade as a whole which may be a bit of a hindrance as far as investment is concerned in the long run.