It's a truism in today's troubled times that a diamond exchange is the only friend an investor has. Everything from blue-chips to real estate has tanked badly, and the volatility of oil markets involves too much risk for hedging. Diamonds are still extremely valuable with a stable market. The best part is that demand will be much higher than supply over the long-term.
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.
Broadly speaking, they can be separated into industrial and gem grades. The former has applications in cutting and drilling tools. Gem grade stones are used in jewelry.
In order for diamonds to be considered legit for trade, they must have at least a couple of certifications. One is the certificate issued by a GIA (Gemological Institute of America) lab after an examination of the stone and its attributes. The other one is a Kimberley Process certificate which weeds out stones that are conflict diamonds.
The World Federation of Diamond Bourses has created standards which most of the major exchanges follow. This ensures that all WFDB member bourses across the world follow the same system for buying and selling diamonds in a safe and transparent environment. The result is a stable global market where stones from mining companies are legally purchased by the diamond exchange and then graded, certified and delivered safely to buyers.
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.
Broadly speaking, they can be separated into industrial and gem grades. The former has applications in cutting and drilling tools. Gem grade stones are used in jewelry.
In order for diamonds to be considered legit for trade, they must have at least a couple of certifications. One is the certificate issued by a GIA (Gemological Institute of America) lab after an examination of the stone and its attributes. The other one is a Kimberley Process certificate which weeds out stones that are conflict diamonds.
The World Federation of Diamond Bourses has created standards which most of the major exchanges follow. This ensures that all WFDB member bourses across the world follow the same system for buying and selling diamonds in a safe and transparent environment. The result is a stable global market where stones from mining companies are legally purchased by the diamond exchange and then graded, certified and delivered safely to buyers.
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To learn more about wholesale diamonds for investments, simply call Investment Diamond Exchange (IDX) and a diamond representative will answer all of your questions.
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