1 Answers: How is the Diamond Market Like The Stock Market?
Question
How does the diamond market perform compared to the stock market? Is it similar or am I way off here. I would like to start investing in precious metals and commodity based items.
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Precious Metals
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Answer ( 1 )
The diamond market (like gold & silver) is a storehouse of value to protect people against inflation and a secure way to keep an emergency stash of money during political and economic turmoil. For example, when many Jews escaped Nazi Germany, the only assets they were able to smuggle out with them were investment grade diamonds sewn into their clothing.
Unlike the metals, diamonds aren’t that liquid. The markup between buyer & seller is enormous. If you have a high quality diamond and try to sell it to a jeweler, you will only get a fraction of its value. Bullion gold coins like the American Eagle, Krugerrand and the Canadian Maple Leaf are easily sold to coin dealers for 95–97% of the current melt value.