Thursday 12 September 2013

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.

The long term demand for these stones means that investors are continuously searching for ways to achieve profits in this industry. The particular commodity has been a symbol of wealth and love for decades. This trade is most desirable because it offers greater value for investors over a projected period of time.

A larger number of investors are moving towards this particular asset as it tends to hold its value when the economies are experiencing a slump. For these reasons people are considering cash injections into the industry as a result of future limited supply and value increases. The limitation is the lack of transparency and the options available for investment.

The diamond market cannot be traded in the same manner as commodities such as gold. Its value is based on individual factors involving the cut, color, clarity, and carat. The valuations are therefore subject to individual appraisals and therefore there is no universal price per ounce.

The option to trade these stones on the retail market means that sellers are less likely to make a considerable amount of money. There are also many complications adding to the expense, value and having the diamond insured. Unless you have access to expertise in the industry, the outcome for investment could be devastating.

The key issue of the rough diamonds is determining a way to achieve economies of scale. Many companies have released reports for investment in diamond funds that may prove most favorable for traders. Remaining in contact with knowledgeable persons in industry and understanding trade options can aid in making the best possible investment decision.




About the Author:



1 comment:

Unknown said...


I had found an amazing software on internet which could generate SIGNALS of forex whenever there was an opportunity to earn. I am using this software for last 3 months & I earn every day 1000 +/- 20% PIPS using this simple software. GET IT HERE GET 1000 PIPS DAILY