The international economy has yet to recover from the recession of recent times, and inflation is a constant threat to financial security. It is therefore advisable to put something aside for a rainy day. One easy way of storing wealth is to invest in diamonds, or in other long term commodities like gold or art.
Gemstones are a long term investment because they are a durable item, like gold. This makes it possible to tie up capital in gemstones as a defense against inflation and market instability. Given their relatively small size, gems make a viable option in transporting wealth. Their size also makes them easy to store.
Gemstones are traded on an international level. 70% of authentic stones (that is, stones not produced artificially) are used in industry, while the remainder are bought by the jewelery sector. The gems may therefore be re-sold to an existing market once they have served their purpose in an investment strategy.
The advent of synthetic gemstones has not caused a large reduction in the price of authentic stones, and it is not expected to either. The same situation has arisen in the case of rubies, with no concomitant fall in price. Besides, the public has a penchant for the authentic stones as opposed to the synthetic ones.
At present, gemstones do not have a set commodity price like gold or crude oil do. However, this may change soon as the stones are set to become a traded commodity on the NASDAQ stock exchange by 2014. This development should help to create a more standard price range, paving the way for full-scale publicly traded commodity status.
A large capital outlay is needed to invest in diamonds. Each investor also needs to establish the nature of the stones that they should buy. Gemstones offer a relatively more secure investment in a volatile recessionary economy.
Gemstones are a long term investment because they are a durable item, like gold. This makes it possible to tie up capital in gemstones as a defense against inflation and market instability. Given their relatively small size, gems make a viable option in transporting wealth. Their size also makes them easy to store.
Gemstones are traded on an international level. 70% of authentic stones (that is, stones not produced artificially) are used in industry, while the remainder are bought by the jewelery sector. The gems may therefore be re-sold to an existing market once they have served their purpose in an investment strategy.
The advent of synthetic gemstones has not caused a large reduction in the price of authentic stones, and it is not expected to either. The same situation has arisen in the case of rubies, with no concomitant fall in price. Besides, the public has a penchant for the authentic stones as opposed to the synthetic ones.
At present, gemstones do not have a set commodity price like gold or crude oil do. However, this may change soon as the stones are set to become a traded commodity on the NASDAQ stock exchange by 2014. This development should help to create a more standard price range, paving the way for full-scale publicly traded commodity status.
A large capital outlay is needed to invest in diamonds. Each investor also needs to establish the nature of the stones that they should buy. Gemstones offer a relatively more secure investment in a volatile recessionary economy.
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