Friday, September 13, 2013

Rough Diamonds And The Need For Transparency In A Difficult Market

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.

Markets predict the ongoing demand for these stones as more people are showing interest in gaining profits within the diamond market. It has been regarded as a popular commodity associated with wealth and love. The trade has become more favorable for investors as these stones hold its value over an extensive period of time.

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.

Unfortunately the diamond market simply cannot be traded as other commodities including gold and silver. The value is not uniform, but rather individually based on cut, color, clarity, and carat. The appraiser is required to provide a valuation and is subject to considerable differences from one person to the next as market value is not synonymous.

If these stones are traded in retail, the potential for significant profits is decreased. There are also a number of complications surrounding the overall value and insurance of a diamond. Many would advise against investment in these markets unless you have access to expert opinion in the industry.

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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