The international economy has yet to recover from the recession of recent times, and inflation is a constant threat to financial security. It is therefore advisable to put something aside for a rainy day. One easy way of storing wealth is to invest in diamonds, or in other long term commodities like gold or art.
Gemstones are a long term investment because they are a durable item, like gold. This makes it possible to tie up capital in gemstones as a defense against inflation and market instability. Given their relatively small size, gems make a viable option in transporting wealth. Their size also makes them easy to store.
There is an established market for diamonds internationally. 70% of authentic stones (stones harvested through mining, as opposed to synthetic stones) are used in industrial applications, with the remaining 30% going into jewelery. As a finite investment, the stones therefore offer re-sale possibilities.
Synthetic gemstones are not expected to have a substantially negative impact on the price of the stones. As an example, rubies are also manufactured artificially and this has not destroyed their price. Customers have a preference for authentic gems, and synthetic ones may even be considered unacceptable socially.
At present, gemstones do not have a set commodity price like gold or crude oil do. However, this may change soon as the stones are set to become a traded commodity on the NASDAQ stock exchange by 2014. This development should help to create a more standard price range, paving the way for full-scale publicly traded commodity status.
Because gemstones are relatively expensive, they require substantial capital to acquire. There is also a huge variety of stones for the potential investor to choose from. Any investor seeking long term stability should consider a move to invest in diamonds as an alternative to other long term options.
Gemstones are a long term investment because they are a durable item, like gold. This makes it possible to tie up capital in gemstones as a defense against inflation and market instability. Given their relatively small size, gems make a viable option in transporting wealth. Their size also makes them easy to store.
There is an established market for diamonds internationally. 70% of authentic stones (stones harvested through mining, as opposed to synthetic stones) are used in industrial applications, with the remaining 30% going into jewelery. As a finite investment, the stones therefore offer re-sale possibilities.
Synthetic gemstones are not expected to have a substantially negative impact on the price of the stones. As an example, rubies are also manufactured artificially and this has not destroyed their price. Customers have a preference for authentic gems, and synthetic ones may even be considered unacceptable socially.
At present, gemstones do not have a set commodity price like gold or crude oil do. However, this may change soon as the stones are set to become a traded commodity on the NASDAQ stock exchange by 2014. This development should help to create a more standard price range, paving the way for full-scale publicly traded commodity status.
Because gemstones are relatively expensive, they require substantial capital to acquire. There is also a huge variety of stones for the potential investor to choose from. Any investor seeking long term stability should consider a move to invest in diamonds as an alternative to other long term options.
