I got a call earlier this week from a fellow who works for a diamond brokerage firm. I gave them my contact information when I went to a resource conference earlier this year. He wanted to tell me that their Vancouver office is holding a seminar later this month about investing in diamonds. Fancy colored diamonds in particular. I thought it could be interesting so I agreed to attend. I plan to learn more about what their company does, and the diamond business in general. It should be fun 😀 After our phone conversation I poked around the internet a bit to learn more about this rare commodity and found out that many investors view colored diamonds as a form of alternative investment. I love learning about alternative investments because it broadens my perspective as an investor.
I’ve only done some preliminary research on the topic but from what I’ve found out so far the price of an average grade, colored diamond have doubled to tripled over the last decade or so. Minimum investment through a broker is about $10,000 depending on what you’re looking for. You can invest in diamonds in other ways too, like buying them from established online wholesalers or various retailers. But because of the markup in stores many investors buy rare diamonds through brokers. There’s also news about a diamond investment fund or ETF but I don’t know much about those.
At this point I don’t know if investing in diamonds is a good idea yet. They say diamonds are forever. But are they a dependable long term investment or do they simply represent a silly market where rich people pay for overpriced shiny rocks that don’t have much intrinsic value in the real world? Well that’s what I’m going to find out 😀
I’ve gathered a few Youtube video links below about investing in diamonds in case anyone is interested. Sorry about the poor quality. Please keep in mind that these clips may be very biased so as any prudent investor should do, take any promotional talk you hear with a grain of salt and always do your own research before making important financial decisions. That’s exactly what I’m going to do in the next few weeks, more research.
Are diamonds a safe investment? 4 min
Diamonds – Investor’s new best friend 2.5 min
Investing in rare colored diamonds 8 min
Random Useless Fact: The Average teacher salary in Switzerland in 2010 was $112000 per year