Are Diamonds as an investment an alternative to the stock market and gold?

During a time when the only thing for certain seems to be economic uncertainty, have you considered investing in diamonds? For months now, you’ve watched your stocks and other investments see-saw while watching gold prices rise. Now, more than ever, is the right time for a diamond investment. After all, wouldn’t it be great to enjoy a diamond both to wear in a piece of jewelry and for investment purposes?!

The diamond investment market has seen a robust recovery since the economic collapse devastated the luxury goods market just a few years ago. Numerous factors play into rising prices, but among the most significant is the recent news of De Beers cutting diamond mining production. With a marked increase in demand from China and diamond supplies simply drying up, De Beers has reduced production in order to extend the life of their mines. As a result, we expect to see prices continue climbing as the divide between supply and demand widens. With scarcity comes increased value, making this the optimum time to consider a diamond investment strategy to round out your portfolio.

Take a look at these Ten Year Annual Investment Results comparing diamond investments with other, more traditional, investment options* …

Gold … up 411%
Platinum … up 178%
5.00 carat diamond (RDI) … up 153%
3.00 carat diamond (RDI) … up 95%
$ per Euro … up 38%
Yen per $ … up 38%
1.00 carat diamond (RDI) … up 35%
U.S. interest rate … up 30%
NASDAQ … up 7.8%
Dow Jones … up 7.3%

According to the Merrill Lynch 2011 World Wealth Report, gemstones and jewelry account for 22% of all “investments of passion” for higher net-worth individuals. Even the affluent urbanites in China are paying attention to the rising value and are “buying diamonds in droves” according to a recent article in Financial Times.

Diamonds are truly timeless, both in beauty and value. The higher their rarity, the more valuable they become. As a long term investment, natural diamonds not only maintain their value but appreciate at a far greater pace than most other investment vehicles. Other advantages of investing in diamonds include:

  • Diamonds are the most concentrated form of storing wealth.
  • Diamonds require no ongoing management, nor do they incur property taxes or require liability insurance.
  • They offer financial privacy not available elsewhere. Unlike other financial investments, a diamond investor has 100% direct ownership of a portable tangible asset of proven value.
  • Diamonds retain their value even when the rest of the economy bottoms out and have performed consistently well throughout economic downturns.
  • There is a nearly universal belief that diamonds have enduring value.
  • Unlike commodities and other investments, diamonds are insulated from the daily fluctuations of the markets and are not as likely to reflect sharp price changes.
  • Demand for diamonds is international.

Diamond investment may not be for everyone, but during such volatile economic times wouldn’t it be wise to invest in an asset that not only stands a great chance of appreciating and looks great in a stunning piece of jewelry?

This piece was provided courtesy of Matthew Klidjian, Owner of Ascot Diamonds.
You can reach them at 404-844-0800 or visit them at: Ascot Diamonds Website

6105 Blue Stone Road, NE
Suite E
Atlanta, Georgia  30328

What is a Private CFO - Find Out Now

Have Financial Questions? – We have the Answers!

Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®

Co-CEO and Founder oXYGen Financial, Inc

oXYGen Financial, Inc. co-CEO Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.

Phone                                     1.800.355.9318                   or                                     770.777.0427                  

oXYGen Financial - Atlanta Georgia Financial Service Experts

Securities and Investment Advisory Services offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Oxygen Financial is not affiliated with NFPAS. NFPAS does not provide tax or legal advice.   This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Advisor Services, LLC (NFPAS) may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact NFPAS Compliance Department at 512-697-6000.   PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. NFP Advisor Services, LLC makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is NFP Advisor Services, LLC liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.

About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves


My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

Read More About Ted Here

Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor regarding your individual situation. 

Background and qualification information is available at FINRA's BrokerCheck website.


  • Avatar
    September 1, 2011

    very informative. Good point!

  • Avatar
    September 5, 2011

    Gold is the ultimate ponzi scheme imaginable set to burst for the simple fact that it relies on the greater fool theory of someone else buying gold at a higher value. Gold pays no return and is such nothing more than a fallicious “investment”.

Leave a Comment