How to Invest in Diamonds
Though most investors think of jewelry and wedding rings when they think of diamonds, these minerals are primarily used for industrial purposes rather than fashion statements. Diamonds are the hardest natural mineral in the world, making them perfect for drill bits and other cutting tools. Aside from that, diamonds are also found in lab equipment, microchips, heat conductors, and much more.
An investment in diamonds can be thought of as a play similar to precious metals. While not nearly as liquid, diamonds will generally appreciate over time and be more valuable from a pricing standpoint. Some of these jewels are worth upwards of $400 million to some that are literally so rare, they are considered priceless.
Ways to Invest in Diamonds
There are 2 ways to invest in Diamonds: Physical and Stocks. Click on the tabs below to learn more about each alternative.
How to Buy Physical Diamonds
The only direct means of investing in diamonds is to physically own them.
How to Buy Diamonds Stocks
Unlike many other commodities in the hard assets category, there are actually a number of stocks to help one invest in diamonds. They are all indirect, but they can allow one to make a play on these precious minerals without forking over too much capital.
Harry Winston Diamond Corp (HWD) is a small cap firm that engages in mining and retailing diamonds in North America, Europe, and Asia. Another option comes from Mountain Province Diamonds Inc (MDM). This firm, based in Canada, engages in the exploration and mining of Diamonds in Canada.