Thinking of Diamonds as a Commodity
Since 2012, investment professionals have been working to make diamonds a commodity on the global stock exchanges. Like gold or silver, gems have the ability to be certified at a level to provide consistency of quality. For the purposee of the commodity markets, synthetic diamonds make up 99 percent of the diamonds used by industry and are produced by 17 countries.
Lower grade Industrial diamonds may be sold as a commodity like copper or iron, leaving high end diamonds for investments and jewellery.
The industrial uses of diamonds include:
- Computer chip production
- Drilling – natural gas, oil
- Machinery manufacturing
- Stone cutting and polishing
- Transportation – vehicles
- Transportation – infrastructure
- Sale as bort, grit, dust and powder
Investment Diamonds
In Europe, a more conservative investment environment, diamonds are considered a safe investment when accompanied with a certificate verifying the quality. An investment diamond can easily be sold for cash or used as collateral and if considered an investment diamonds will not be in a setting.
Diamond Jewellery
For long-term investors, jewellery is one way diamonds and gold may be found. The artwork of the jewellery piece adds value only if the designer / artist has a dedicated collector base at auction. If the artist is unknown, the jewellery is sold for the value of the gems and metals used for the jewellery piece.
