Do you think high quality,large,well cut diamonds are a good investment???

Answer 1

No, diamonds are not a good investment if you plan to buy an "investment grade" diamond, and lock it away in a dark safe deposit box. First of all, you are investing in a commodity that is controlled by a benevolent dictator (monopoly) in a foreign land. I'm talking of course about Debeers company that controls the price and distribution of over 80% of the world's diamonds. There is no free market price at the source of diamonds. Debeers sets the price and controls the quantity of diamonds available. No one knows how many diamonds are stored in Debeers' vaults.

People who buy investment diamonds from a broker, friend or relative usually pay such a high price over true wholesale, that it might to take forever to see any real appreciation; this is especially true for those laymen who believe they really know the four C's and a lot about the diamond market. Wheeling and dealing in diamonds should only be attempted by experienced, professional diamond dealers. Diamonds pay no dividends or interest. My opinion is that diamonds are for wearing, not investing.

Answer 2

For the general run of the mill investor, no. There is too much expertise required to know a good diamond from a run of the mill diamond. There is also too much expertise required to know what the value of a good diamond is. There have been steps taken to make diamond investing less of a specialized field. Namely, certification, but even that is dependent upon someones opinion. And that does not eliminate the question of what is the proper value of that diamond. Unless you are intimate with the diamond market, you have really no idea.

Answer 3

Maybe. Consider gold coins as a future investment.

Answer 4

Only if you can purchase them wholesale... and be sure you're working with legitimate companies.

Answer 5

No.