Gibb River to Move Forward on Blina Diamond Project

Gibb River Diamonds has received the green light from Western Australian officials to mine at its...

December 11th, 2018

Lucapa’s Lesotho Diamond Mine Starts Production

ASX-listed diamond miner Lucapa has commenced commercial diamond recovery at the Mothae kimberlite mine in Lesotho.

December 5th, 2018

Dunnedin Ventures President: It’s Not About Finding Diamonds, but...

Dunnedin Ventures President Claudia Tornquist shares an outline of the Kahuna project and the methodologies being...

December 5th, 2018

Keep up with diamond investing this year

 
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Newfield Updates Tongo Resource Estimate to 7.4 Million Carats

The updated resource estimate has increased the inferred resource by 2.9 million carats, from 4.5 million...

November 27th, 2018

“Unbelievable” Pink Diamond Sets Auction Record

The 18.96-carat Pink Legacy was brought to auction by Christie's Geneva as part of the Magnificent...

November 19th, 2018

Keep up with diamond investing this year

 
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Stornoway Diamonds Posts Q3 Loss of C$37.6 Million

Despite the multi-million dollar loss, Stornoway was able to ramp up underground production at its flagship...

November 14th, 2018

Lucapa Discovers New Diamond Resource in Angola

The new find was made during an exploration program focused on the extensive flood plains located...

November 6th, 2018
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Buying diamond jewelry is a common practise, but buying diamonds and trying to turn a profit isn’t an endeavor most investors undertake. That’s largely because diamond investing is a little bit tricky, especially for those used to investing in precious or base metals, whose prices move more predictably. For one thing, unlike metals like gold and silver, diamonds are valued subjectively; there is no simple cost-per-ounce valuation system for them, so investors can be left wondering whether different appraisers will assign their diamond the same value. Colored diamonds, which are rising in popularity, only complicate that issue. Connected to valuation is the problem of selling a diamond. Most diamonds are sold through retail stores at very high profit margins —...

Buying diamond jewelry is a common practise, but buying diamonds and trying to turn a profit isn’t an endeavor most investors undertake.

That’s largely because diamond investing is a little bit tricky, especially for those used to investing in precious or base metals, whose prices move more predictably. For one thing, unlike metals like gold and silver, diamonds are valued subjectively; there is no simple cost-per-ounce valuation system for them, so investors can be left wondering whether different appraisers will assign their diamond the same value.

Colored diamonds, which are rising in popularity, only complicate that issue.

Connected to valuation is the problem of selling a diamond. Most diamonds are sold through retail stores at very high profit margins — in other words, an investor looking to profit from selling a diamond necklace or other jewelry would like suffer an enormous loss.

Those issues dissuade many investors from getting involved in the diamond space, but they are by no means unsolvable. Generally the trap market participants fall into is thinking that every diamond can be considered an investment; however, as industry experts have pointed out, that’s simply not true.

So what types of diamonds are considered investment quality? Interestingly, most white diamonds do not fall into that category. That’s because about 98 percent of all diamonds are of the white variety, meaning they are not that rare. Essentially, while some can be a valuable investment, to do so they must be amongst the largest and highest quality.

Many involved in the diamond space are instead looking to opportunities in the colored diamond space. Only around 2 percent of all diamonds are colored, meaning that they are very rare.

Colored diamonds come in a myriad of colors, with red and blue being among the rarest and most pricy. Yellow diamonds fall on the more affordable end of the spectrum, and brown diamonds are cheaper still. For investors looking for an entry point to the diamond market, they may be options to consider.

All that said, buying physical diamonds is by no means the only way to gain a foothold in the diamond market. Investing in diamond stocks is also a possibility, though doing so requires some careful thinking. That’s because diamond exploration is costly compared to exploration for other resources, and in today’s tough markets companies are receiving little funding.

In terms of pricing, diamonds did not fare very well in the first half of 2015. However, hope remains amongst industry experts. John Kaiser of Kaiser Research said recently that he’s looking longer term for improvement, noting, “long term, if you’re optimistic about global GDP growth and believe that, say, 2020 and beyond India is going to finally get traction and start to imitate what China accomplished in the last 15 years, you’re going to see again expanding wealth and prosperity in the world.”

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