To paraphrase a popular quote, the diamond exchange is increasingly an investor's best friend. Blue-chip stocks have tanked, the real estate market is no longer as safe as it once was, and oil is too volatile even as a hedge. Diamonds, however, are always going to be valuable and a good bet for the simple reason that it is a stable market where demand far outstrips supply. This status quo is likely to remain unchanged for the foreseeable future.
Of course, no investor can blindly wade in because there are many things that must be learned. For instance, buying and selling of polished and uncut diamonds doesn't take place directly between individuals or companies. The transaction is facilitated through exchanges across the globe.
They are not like stock exchanges, taking lists and letting the market determine the price. In this case, the bourses have to acquire polished as well as uncut stones, grade them and get certifications. Every stone is unique based on attributes such as color, size, clarity and shape. There are around 12,000 categories into which a stone can be placed under this system.
In general, all diamonds can be classified as being gem or industrial grade. The latter has applications in drilling and cutting tools. Gem grade stones are purchased in wholesale quantities by jewelers for making jewelry.
The background and grade of every diamond can easily be verified if it is certified. The Gemological Institute of America has GIA labs at various locations that can examine diamonds and issue certifications specifying the grade and other physical attributes. The best background check is provided by a Kimberley Process certification, which makes sure no blood (conflict) diamonds enter the legitimate trading market.
The operations of most of the major exchanges are usually subject to the standards set by the World Federation of Diamond Bourses. WFDB members include the largest bourses from all over the world. The entire system has been fine-tuned so that rough and uncut diamonds from mines can move smoothly to the skilled staff at the diamond exchange for processing, and then be safely handed over to buyers for polishing and use in their applications.
Of course, no investor can blindly wade in because there are many things that must be learned. For instance, buying and selling of polished and uncut diamonds doesn't take place directly between individuals or companies. The transaction is facilitated through exchanges across the globe.
They are not like stock exchanges, taking lists and letting the market determine the price. In this case, the bourses have to acquire polished as well as uncut stones, grade them and get certifications. Every stone is unique based on attributes such as color, size, clarity and shape. There are around 12,000 categories into which a stone can be placed under this system.
In general, all diamonds can be classified as being gem or industrial grade. The latter has applications in drilling and cutting tools. Gem grade stones are purchased in wholesale quantities by jewelers for making jewelry.
The background and grade of every diamond can easily be verified if it is certified. The Gemological Institute of America has GIA labs at various locations that can examine diamonds and issue certifications specifying the grade and other physical attributes. The best background check is provided by a Kimberley Process certification, which makes sure no blood (conflict) diamonds enter the legitimate trading market.
The operations of most of the major exchanges are usually subject to the standards set by the World Federation of Diamond Bourses. WFDB members include the largest bourses from all over the world. The entire system has been fine-tuned so that rough and uncut diamonds from mines can move smoothly to the skilled staff at the diamond exchange for processing, and then be safely handed over to buyers for polishing and use in their applications.
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To receive additional information about loose diamonds for investments, simply call Investment Diamond Exchange (IDX) and an agent will answer all of your questions.
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