Diamond Investments (Platinum Diamonds)

[mr right]

I have recently been looking in to Diamond investments and came across a whole load of information on the web of different opiouns. I have found comments from Warren Buffet and other diamond experts.

I was recently speaking with Diamond investment broker called platinum diamonds I dont know if any one has heard of them.

But they have stated that

The current investment oppotunity in diamonds is suggested to be safer than bonds, and with the markets progressively changing it expected that there will be a rise of 20% in value over the next 18 months.

and this is becuase with China becoming a major player in the marketplace, the global shortage will become paramount and only direct source companies can offer parcels at such competitive values, without the price increments accrued from buying parcels.

As far as diamond invesment goes, they are viewed on par with bonds yielding returns similar to top hege funds and are deemed one of the best invesments since real estate in terms of ROI.

The company in question is called Platinum Diamonds, it sounds really good and the consultants their sounded really knowledgable. I have all read some other great review from other customers.

 

[denverappraiser]

Balderdash.

The major problem with investing in diamonds is that there is no liquid market for the ‘investor’ to sell. Even with accurately graded, well documented goods that are bought for rock bottom prices individual consumers take a 25-50% hit on resale. Bad grading can amplify this monstrously. If you want to invest in the diamond business, consider stock in Blue Nile, BHP Billition, Tiffany or one of the other publicly held players. Recently they’ve all done quite well by the way. Far better than the supposed bonds that these folks are comparing with. This, of course, doesn''t mean that they''ll do well in the future but at least you can buy and sell your investment with a nominal transaction cost so if it goes up, you''re the one who gets the money instead of some broker.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Appraisals in Denver

 

[perry]

Investing in diamonds is like investing in new cars.

The minute you take it out of the dealer it looses 25% or more of its value (and the 25% is only if you have really negotiated a very very good deal on the purchase price).

There are only few very very rare exceptions to this dealing with a really unusual specimin (priced well beyond normal people''s ability to acquire).

Diamond investments from the perspective of earning a return are a hoxe; which has been well documented many times.

People want to believe that because they are "rare" and expensive that they are a good investment. Neither is true. Diamonds are not really that rare - and the markups can be quite good.

The fact is that diamonds are sold at retail and purchased at wholesale. Always have been - always will be.

They are not an investment comodity like precious metals which can be used in industrial processes (and industrial process diamonds sell for several dollars a carat).

If you really want a good idea about the history of diamonds - read this book which is available a chapter at a time online... A few disagree with some of the points - but no one has ever disagreed with the chapter that talks about diamonds as an investment.

The Diamond Invention:

http://edwardjayepstein.com/diamond/prologue.htm

The only way that diamonds make sense as an investment - is as a protable way of moving and recovering part of your estate to another country. Recovering 1/2 of your estate is a lot better than recovering none of it if forced to relocate and you cannot safely use international banking.

Perry

 

[hgau999]

Diamonds are a poor investment. The resale value is only 50% if your lucky. I would only consider it as an investment if you were on the wholesale or retail side of industry. The price of diamonds are held up largely in part by the De Beer''s monopoly. It''s best to stick with equity long term and if you want less volatility then you have bond and treasuries. Precious metals are a better investments if the price is right.

 

[denverappraiser]

Date: 9/26/2007 9:55:26 AM
Author:mr right
I have found comments from Warren Buffet and other diamond experts.

I would like to add that you either didn’t read or didn’t understand the comments from Warren Buffett. Can you provide us a link to the specific comment where he recommended investing in diamonds? He’s bullish on diamond retailers and he owns the Helzburg chain and Borsheim’s among other things but this is hardly the same thing. He has decidedly NOT recommended that purchase of diamonds is an investment for his customer, his stockholders or his partners and he doesn’t list a single stone in his portfolio. He invests in BUSINESSES, not diamonds, and Helzburg has proven to be a fine enterprise. Not that it matters, but he makes no claim at all about being a diamond expert.

Note of disclaimer: I’m a stockholder in Berkshire Hathaway, which makes me a partner with Mr. Buffet and unlike him; I am a diamond expert, although he’s never asked my opinion on this matter.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Jewelry Appraisals in Denver

 

[Garry H (Cut Nut)]

Date: 9/26/2007 9:55:26 AM
Author:mr right

I have recently been looking in to Diamond investments and came across a whole load of information on the web of different opiouns. I have found comments from Warren Buffet and other diamond experts.

I was recently speaking with Diamond investment broker called platinum diamonds I dont know if any one has heard of them.

But they have stated that

The current investment oppotunity in diamonds is suggested to be safer than bonds, and with the markets progressively changing it expected that there will be a rise of 20% in value over the next 18 months.

and this is becuase with China becoming a major player in the marketplace, the global shortage will become paramount and only direct source companies can offer parcels at such competitive values, without the price increments accrued from buying parcels.

As far as diamond invesment goes, they are viewed on par with bonds yielding returns similar to top hege funds and are deemed one of the best invesments since real estate in terms of ROI.

The company in question is called Platinum Diamonds, it sounds really good and the consultants their sounded really knowledgable. I have all read some other great review from other customers.

You get the picture - diamonds are a thing to have and enjoy. Investments are a thing to get money to get diamonds and if you are a boy, to give to a girl (or whatever is your preference) and get fringe benefits.

As for China - take Japan out of East Asia and the sales of diamonds in China made up 4.36% in 2005 compared to USAat 34.01%. If China consumption continues to grow at about 15-20% it will catch Japan in about 10 to 20 years.

Hype is cheap