diamond investment

diamond is not just good looking, in some stage private equity will put their hand on kim at this price.............mmm




Diamond Prices and Diamond Investments
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.

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.

Diamond prices

The wholesale diamond price has historically been controlled by De Beers Group, who have an estimated 45 to 50% 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 (historically De Beers market share has been 80%). De Beers raised diamond prices three times in 2004 by a total of 14%.

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.

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.