Diamond Investments Promising but Several Factors Limit Potential

Market Analysis
22/05/2015 11:01

Despite these multitudes of reasons [steady increase of diamond prices over time, future value increase probable due to strong demand and dwindling supply], financiers are still wary of investing in diamonds [due to lack of transparency, fungibility & standardization]. Investors feel that they are not knowledgeable enough to evaluate diamonds and have to depend on intermediaries. Even the gem and jewelry market is reluctant to offer diamonds as investment option owing to smaller profit margins compared to retail market. It is challenging for outsiders to buy diamonds at wholesale prices since the diamond houses trade only through memberships.