Diamonds in Investment Portfolios

Although diamonds are sold and paid for in terms of dollars its own gold clause. It can if it wishes demand payment in gold. One where another if the dollars value dimensions in terms of other currencies the manufacture is going to raise prices to cover depreciation and even that means changing its secret price formula. Then to we mustn't forget production factors. The cost of mining are tremendous and getting more so. And times are getting scarcer at same time. As the months go deeper cost escalate all the#some quality of stones all diminish. The most optimistic estimates of the world's reserves life expectancy are 30 to 40 years. But no one knows for sure.

As supplies go down to Lancaster. Fears of a currency the economy and the Socio political systems and larger almost daily. Wethersfield Taiwan Thailand Argentina Brazil France or the United States itself people are looking for ways to protect their assets in an age of growing skepticism paper investments. In that case I think the continued diamond increases on the order of it is 25% per year can be predicted with some degree of safety and conservatism. The rate of increase could go much higher. In 1979 with inflation of about 13.5% investment grade's diamonds were as close to 50% of a 26%? It is possible to diamond cadet increased to 80% rate. In short I don't see time and prices coming down. I see them growing up at an even sharper rate. Today's diamond prices wide all times highs will be tomorrow's bargains. Summarize the chief actors that should keep the prices of diamonds rising the future are supply 30 to 40 years noon reserves. Production of gel quality rough time and has not increased in the last three years picked fewer and smaller diamonds are found as minors go deeper into the minds. You discoveries while promising have yet to be proven. Demand is increasing anonymously especially is investing in time and is increasingly excepted on a worldwide scale. As investors seek alternative investments at a paper diamonds will be the main beneficiary. The manufacturer has the traditional role as a regulator of the market. Financially sound it appears that it's getting even stronger. This rosy picture doesn't mean of course that you should be circumspect when buying diamonds. There're many pitfalls of feasting unsuspecting investor.

Now that we've discussed the production distribution creating an price performance of diamonds you should've enough background information to consider making your first investment time and transaction. But what do you buy? From whom to buy? How do you go about making a purchase intelligently insecurely? and how much should you invest in diamonds. I have clients who feel that severe economic dislocation enrich just is just around the corner. I've European and South American investors of live through double-digit inflation and social upheaval political unrest and the like. People like he sometimes has have as much as 50% of their portfolios in diamonds. Given the economic social and political climate in United States it would not be imprudent to have 10 to 20% of one's overall interest portfolios and diamonds however you should have a minimum overall net worth of $50,000 excluding your home. For we don't have South American cell inflation yet and serious social and economic swings yet sons are growing the fees undesirable trends may be, possibility in the future is pretty an investor therefore must begin diversifying his assets to protect against his possibilities. If inflation increases if American fundamental economic situation worsens the name of diamonds in your portfolio may have to rocks.

As a rule of thumb I would recommend that investor half 20 to 30% of his overall portfolio invested in hard assets. This could be broken down into silver char bags of junk coins and bouillon cold Krugerrands and bouillon and diamonds about 130 each. Did not of money you should place into diamonds and other tangible depends naturally on your individual situation. The amounts of money you should place into diamonds and other tangibles depends naturally on your individual situation. Retired persons for example will probably be more concerned with income long-term capital gains so they may want to have a smaller percentage and donuts. On the other hand given the precarious position of such security and private pensions retirees me to go have a few diamonds as it gets collapse the paperback pension system.