Diamonds Investment

The Price of Diamonds to individuals:

Much is spoken today, and more with the crisis we have, on various products in which to invest our money. Today there is a huge product range. We have investment funds of all kinds of these may be of fixed income, equities, funds that invest in commodities and so on. Then we have other more traditional bank deposits, letters of treasures and countless other products that allow us to have our money as we deem appropriate at the time of investing.

What most caught my attention in recent months, if not in the last two years, is seen as inducing some people to invest in products that ordinary mortals do not have the slightest idea. Examples are for everyone. Since Rumasa-2 to companies investing in stamps. But the most striking in all this time are those that induce individuals to invest in diamonds through JEWELRY WEBSITES (minority within the sector). We say that buying from them, and it is not clear why, from the moment we buy a diamond from them and we are guaranteed a return, either the diamate bought jewelry or loose diamond. I have even read that statements such as the profitability of their diamonds is 3 or 4%, indicating that in these turbulent times as the purchase of diamonds is one of the best way to alleviate the economic crisis. Given these statements, which supposedly induce the scam, the best we can say is that those who intend to invest in diamonds utmost care where they put their money. Most porobable, if it were to ignore this, lest they see their assets diminish substantially.

Explanation of the diamond market

The diamond market is extremely closed. Is dominated by two or three companies such as De Beers and Rio Tinto Algore. These multinationals account for 70% diamond market and use (as in any other business) supply and demand to balance the market. The difference is that they practically work with the concept of monopoly. If demand is low immediately closed diamond production and scarce. When demand rises adjust production but never overtaking it to maintain prices.

What would happen if at some point one of these companies dropped or money diverted to other areas?. This is what you are doing now Rio Tinto, a company that gets little benefit from this market and devotes a significant layoff of its money to other farms or mines of copper.

In any case, and down to the reality of ordinary mortals, it must be said that a diamond is an investment only for people who have very thorough and detailed knowledge of this business. The diamonds are traded on several exchanges between professionals in the world, the most important of Antwerp in Belgium. In this bag is sold between 70 and 80% of the diamond there. The raw diamates come from Africa and other continents and large existing companies in Antwerp are responsible for exporting raw or polished. De Beers also once a month to sell its 105 diamates world's largest companies, these companies have the qualifier sightholder, and are due to De Beers in its obligation to buy what they offer, not wanting to eject them .

All this being so, how can a diamond purchased through an online retailer of jewelry, or even in a traditional jewelry, diamonds provide us with to solve the crisis offering us immediate benefits?.

The value of the diamonds in the jewelery sector:

Investing in diamonds is for real professionals who live it. Therefore seek to enjoy the jewel that we have given thought to turn once the move on to our children can also enjoy it or the worst throw them some financial hardship.

A diamond is more than an inexpensive gift is a gift that has meaning espcial. Engagement rings, jewel anniversary, birth of a child .... etc. In definitva a very special gift that is for life and for many generations. A diamond will always have a higher price (comparatively) a car, a purse, a coat .... etc, with gifts that they totally lose their value over time.