Investors Turning from Gold to Diamonds

The Independent reported that because of the fall in gold prices, investors are increasingly turning toward diamonds, which are seeing more favorable returns.

As quoted in the market news:

In the last  five years, one to five-carat diamonds provided annual returns of 12 per cent and this year, global diamond prices are predicted  to increase by around 10 per cent, while the price of the best gems could jump as much as 50 per cent, according to gem trading company Diamond Manufacturers. However, such claims coming from firms involved in the trade should be taken with a pinch of salt.

Prices have been driven up by demand from the emerging middle classes in India and China, the lack of major mining discoveries and, when it comes to the price of cut diamonds, the market is still tightly controlled by the likes of De Beers who have diamonds in store.

 Click here to read the full report from The Independent.