Unlike many other valuable commodities, you cannot buy diamonds in the form of shares or an ETF fund, or as a conventional commodity. Diamonds have to be bought as is.
Because you can pack lots of value in a tiny item, the diamond can be highly valuable in an emergency, for someone who has to leave his country or salvage assets in a dire emergency. But how does it shape up as an investment?
Not very well for a number of reasons. Importantly, quality determination and value require expertise. There is also the danger of loss and/or theft. And the difference between cost and sales figures can vary greatly because of unestablished markups.
Remember also, diamond supplies have to be controlled for values to be stable on a global level, especially when artificial diamonds can be so close to the real thing in appearance and usage. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)
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