Buying Diamonds as an Investment?

In the latest edition of La Jolla Light, there is a new article from Carl Blackburn, owner of Diamond Estate Jewelry Buyers. The informative article is entitled “Diamonds: Emotional & Financial Gain” and includes Blackburn’s professional insight into the subject of buying diamonds as an investment–based on his 25+ years in the estate jewelry trade. Here is an excerpt from the article:

The value of diamonds continues to increase from year to year. One reason for this increase is inflation. It’s simply easier to print more paper than to mine more diamonds.

Supply and demand also figure into the steady increase in the price of diamonds. No new major diamond mines have been developed since the 1990s, and today there are only 30 major diamond mines in existence. The diamond supply in these mines are being depleted, and diamond production is estimated to decline by 1.9% a year by 2019.

The growth of the Asian markets is also pushing the price of diamonds. Asia made up 8% of the diamond-buying market in 2000 and 13% in 2014, and by 2017 Asia is projected to make up 18% of the total diamond-buying market.  In particular, India is a growing consumer of diamonds because of a blossoming middle class. With approximately 500 million new middle-class citizens by 2019 and with the trend in these areas shifting from plain gold wedding rings toward diamond engagement and wedding rings, the potential for new diamond buyers is exploding.

To read the entire article please go to La Jolla Light at: Buying Diamonds as an Investment.

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