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Encyclopedia > Diamonds as an investment

This article discusses the use of diamonds as an investment.

An uncut diamond does not show its prized optical properties.
An uncut diamond does not show its prized optical properties.

Contents

Image File history File links Download high resolution version (651x618, 259 KB) Yellow diamond Origin: This picture was taken at a diamond exposition in Paris, 2001, France Description = rough octaedral cristal (2x2 cm) Source = the author is owner Date = created 2001 Author = Eurico Zimbres FGEL/UERJ Permission = Free for all... Image File history File links Download high resolution version (651x618, 259 KB) Yellow diamond Origin: This picture was taken at a diamond exposition in Paris, 2001, France Description = rough octaedral cristal (2x2 cm) Source = the author is owner Date = created 2001 Author = Eurico Zimbres FGEL/UERJ Permission = Free for all...


History

Diamonds have been treasured as gemstones since their use as religious icons in India at least 2,500 years ago. Their industrial usage in drill bits and engraving tools also dates to early human history. Popularity of diamonds has risen since the 19th century because of increased supply, improved cutting, polishing techniques, and growth in the world economy. Diamonds are not normally used as a mainline store of value during times of crisis, due to their lack of fungibility and low liquidity. However, they may still be useful during times of hyperinflation. For other uses, see Diamond (disambiguation). ... A selection of gemstone pebbles made by tumbling rough rock with abrasive grit, in a rotating drum. ... The Savior (1410s, by Andrei Rublev) For other senses of this word, see icon (disambiguation). ... Drill bits are the cutters of drill tools. ... Engraving is the practice of incising a design onto a hard, flat surface, by cutting grooves into it. ... This article needs to be updated. ... To act as a store of value, a commodity, a form of money or financial capital must be able to be reliably saved, stored, and retrieved - and be predictably useful when it is so retrieved. ... A crisis is a turning point or decisive moment in events. ... The factual accuracy of this article is disputed. ... Market liquidity is a business or economics term that refers to the ability to quickly buy or sell a particular item without causing a significant movement in the price. ... In economics, hyperinflation is inflation which is out of control, a condition in which prices increase rapidly as a currency loses its value. ...


Approximately 20% of mined diamonds are used in jewelry and 80% for industrial uses (such as lasers, drill bits and surgical equipment).


Chemical vapor deposition is now used to produce synthetic diamonds which, unlike diamond simulants, require very close inspection to distinguish them from natural diamonds. DC plasma (violet) enhances the growth of carbon nanotubes in this laboratory-scale PECVD apparatus. ... Synthetic Diamond is diamond produced through chemical or physical processes in a factory. ... Due to its low cost and close visual likeness to diamond, cubic zirconia has remained the most gemologically and economically important diamond simulant since 1976. ...


Diamond price

The diamond price has historically been controlled by De Beers Group, who have an estimated 45 to 80% of the market. Botswana is currently the largest producer of diamonds with mines operated by Debswana, a joint venture between De Beers and the Botswana government. However, over the last decade other producers have developed new mines, in Russia and Canada for example, challenging De Beers' dominance. De Beers raised diamond prices three times in 2004 by a total of 14%. The De Beers Group is a Johannesburg- and London-based diamond mining and trading corporation. ... Debswana Diamond Company Ltd, or simply Debswana, is a mining company located in Botswana, and is the worlds leading producer of diamonds by value. ...


The United States is the biggest consumer of diamonds in the world. The U.S. account for 35% of diamond sales, Hong Kong 26%, Belgium 15% (Antwerp is the world's diamond-trading centre), Japan 6%, and Israel 4%. The price of diamonds fluctuate with global demand and the world economy. For example there was a slump in demand during the Great Depression. The Cathedral of our Lady (Onze-Lieve-Vrouwekathedraal, Antwerp) in the Handschoenmarkt, in the old quarter of Antwerp is the largest cathedral in the Low Countries and home to a number of triptychs by Belgian Baroque painter Rubens. ... Dorothea Langes Migrant Mother depicts destitute pea pickers in California, centering on Florence Owens Thompson, a mother of seven children, age 32, in Nipomo, California, March 1936. ...


Diamond prices vary widely depending on a diamond's carat, color, clarity, cut and shape. Unlike in precious metals, there is no universal world diamond price per gram. The carat is a unit of mass used for gems, and equals 200 milligrams. ... Jewelers set diamonds in groups of similar colors. ... Diamond clarity is a quality of diamonds relating to the existence and visual appearance of internal defects of a diamond called inclusions, and surface defects called blemishes. ... This article addresses the many styles of diamond cut. ... A gold nugget A precious metal is a rare metallic chemical element of high, durable economic value. ...


Methods of investing in diamonds

Uncut diamonds

Polished diamonds

Diamond shares

See also: Category:Diamond mining companies

These do not represent diamonds at all, but rather are shares in companies that mine diamonds. The largest diamond company in the world is De Beers, which is jointly owned by Anglo American (45%), the Oppenheimer family (40%) and the Botswana government (15%). In financial terminology, stock is the capital raised by a corporation, through the issuance and sale of shares. ... The De Beers Group is a Johannesburg- and London-based diamond mining and trading corporation. ... Anglo American plc (LSE: AAL) is a world-wide group of companies, originally founded in South Africa as a mining enterprise but now extending into other areas. ... Sir Ernest Oppenheimer (22 May 1880, born in Friedberg, Germany, was a diamond, gold mining and financial entrepreneur, and founder of the Anglo American Corporation of South Africa. ...


Aber Diamond Corporation shares have significantly outperformed the S&P 500 since 1993 [1]. Aber Diamond Corporation is a Canadian company involved in the production and marketing of diamonds through the development of the Diavik Diamonds Mine. ... The S&P 500 is a list of 500 US corporations, ordered by market capitalization. ...


Taxation

As with any asset that appreciates in value, capital gains tax may apply for individuals. In business and accounting an asset is anything owned which can produce future economic benefit, whether in possession or by right to take possession, by a person or a group acting together, e. ... In many jurisdictions, including the United States and the United Kingdom, a capital gains tax or CGT is charged on capital gains, that is the profit realised on the sale of an asset that was previously purchased at a lower price. ...


Reference

  • Diamonds are big in the North - 2003 article from Northern News Services online

See also

This article discusses the use of the precious metal gold as an investment. ... This article discusses the use of the precious metal silver as an investment. ...

External links

  • Hoge Raad voor Diamant (Diamond High Council) - Antwerp World Diamond Centre
  • World Diamond Council
  • Investing in diamonds - 2004 article from MoneyWeek

 
 

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