Investing In Diamonds?

Diamonds have become the hottest investment trend of the market and according to MSN Money, are a more stable investment than gold. In the MSN article, diamonds are described as a stable investment with the opportunity to be more profitable than gold.

With an exchange-traded fund backed by diamonds due to roll out sometime next year, once it has received the stamp of approval from the U.S. Securities & Exchange Commission, supporters of the idea admit that they need to educate investors in North America on the advantages of diamonds as investments. America views diamonds primarily as pieces of jewelry; in places like India, China and Russia, people traditionally have viewed them as investible assets," says Kristopher Schellhas, managing partner and co-founder of the Los Angeles-based Investment Diamond Exchange, which offers a marketplace for trading the precious gems. Schellhas is correct about that: For centuries, diamonds have been a way for the wealthy or merely affluent to make their riches readily transportable in times of peril. But does that make them a good investment idea?"

Although gold prices have been steadily declining, very little of the diamond market is investors - which MSN believes makes it the perfect potential to grow the diamond market. This market is appropriately suited for those who know what they are dealing with in diamonds: not all stones are considered investment quality. A west-coast based company, GemShares, is working to make this an easier process for those not totally well versed in diamonds. GemShares proposed the diamond ETF and patented the global standard for investment-grade diamonds. The company did so specifically to allow for diamonds to become financial instruments and allow diamonds to be publicly traded. For the complete MSN Money article, click here.