Diamonds Shine As Investment In 2011

Dec 20 2011 | 8:04am ET

Are diamonds an investor’s best friend?

According to Saul Singer of Fusion Alternatives, a boutique investment advisory and trading firm specializing in investment-grade polished diamonds, diamond prices are up 20% YTD, having spiked almost 30% in the first seven months.

Singer, a partner at Fusion, attributes the rise in diamond prices in 2011 to flat production combined with increased demand, particularly from China and the Far East. In a recent statement, Singer said he expects this dynamic to continue in the mid-term.

The major risk to rising diamond prices, according to Singer, is “further macro-economic turbulence in traditional diamond consuming markets such as the United States, however the strong demand from emerging diamond markets such as China is set to offset this risk.” His firm expects diamond prices to rise another 10-15% in 2012.

According to Reuters, Asian buying is driving a boom in diamonds, with China set to become the world’s top diamond buyer. In fact, one of the biggest IPOs in Hong Kong this year was launched by a jewelry retailer, which raised $2 billion to finance its expansion in the region. Part of this can be attributed to Western wedding traditions invading the East—brides-to-be in China and India are increasingly receiving diamond engagement rings.


In Depth

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.