Post by : NGDlover
There is no natural shortage of diamonds. Diamonds can be synthesized at much lower cost than the equivalent natural diamond price, and the chemical and structural purity of a synthetic diamond can exceed a natural one. However, the chemical composition is not the only factor that determines their value - the quality of the cut is of as much, if not greater, importance.
Diamonds are a problematic investment. While it is easy to buy a diamond, it is not easy to sell one unless one is already an established diamond merchant. Another problem for investors is that purchasers other than established jewelers will be paying retail for a stone but can get only wholesale at most if they sell it back to a jeweler. If buying from non-industry sources, fraud is a major risk and even retail jewelers are skittish about it following Jewelers Vigilance Committee warnings in the 1990s about numerous fraud schemes by customers selling jewelry to jewelers or bringing it in for repair.
Some firms offer "investment-grade" diamonds for sale to the public. A prudent investor should ask for a written promise to rebuy the diamonds at or near the purchase price within a specified period.
Today there are a few funds that are investing in diamonds. These funds purchase unique diamonds (very large in size or color); each stone is checked by a few professionals and negotiated until the fund decides to purchase it. Then a marketing team goes into action and through an extensive work the fund yield is gained. Between 2007 and 2008 the price of a diamond from the top range of color, clarity, cut and carat went up by over 50%.
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1 comments:
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