Thursday, August 29, 2013

Rough Diamonds And The Need For Transparency In A Difficult Market

By Anthony Clark


The diamond has been regarded as one of the most beautiful of all the precious stones. The increase in the demand for such assets has been clouded by the fact that supply will begin to taper off in the future. The longer term plans put in place are slow in its progression leaving investors without the necessary transparency in the rough diamonds market.

The ongoing demand for the precious stones has led to a greater number of investors looking to capitalize on these trends. These stones serve as an indication of wealth and ever lasting love. It also serves as a desirable trade because of its long term investment value.

The reason more investors flock towards commodities such as silver, gold, platinum, and diamonds is because of the value it tends to hold when markets fall. More individuals are searching for ways to cash in on the market despite an inability for the supply to meet such expectations. Unfortunately it is this trade that is clouded by a lack of transparency that makes it difficult to serve as a real investment.

The diamond market cannot be traded in the same manner as commodities such as gold. Its value is based on individual factors involving the cut, color, clarity, and carat. The valuations are therefore subject to individual appraisals and therefore there is no universal price per ounce.

The retail trade will simply not deliver profitability for those interested in this market. The expenses may also rise when it comes to the insurance and maintenance of the diamond. Expert advice should always be sought when it comes to seeking the diamond as an investment.

The problem with rough diamonds is finding a way to achieve market uniformity as a commodity investment. Companies have released information regarding the option to invest in diamond funds that may prove favorable for traders. Maintaining knowledge and seeking expert advise pertaining to the industry can aid in making the right investment.




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