The Stock Market
All luxury goods will face challenging times during an economic crisis. However, just as the appeal of diamonds has always endured so too does their long-term investment potential, positioning them to withstand and emerge from short-term uncertainty.
During the economic downturn the industry has invested less in new mining projects and exploration. This, coupled with a reduction in the current diamond inventory, means that previously forecast levels of diamond supply are unlikely to be met, creating an increase in demand.
Diamonds have long been a symbol of eternal love and, by tradition, are inherently linked to marriage and engagement, even during an economic recession.
There has been steady growth and low volatility in the historical value of diamonds. The hardest material on Earth representing a hard asset for investors migrating away from the risk and complexity inherent in stock markets.
