How did diamond value compare to other commodities over the past years?

How did diamond value compare to other commodities over the past years?

  • What are the most popular commodities for investments?
  • How did diamond value compare to the most popular commodities over the past years?
  • How do I go about investing in commodities?

As an investor, you are already aware that proper asset allocation and diversification are key for a sound investment portfolio. But which commodity comes out on top? Diamond may be a more unknown investment, that certainly does not make it unloved. How does the brilliant gem stack up to other commodities? What does that mean for my asset allocation?

What are the most popular commodities for investments?

Although most private persons and active investors are well aware of the potential of an investment in gold or oil, many struggle to name other lucrative commodities on the market. Gold and oil are indeed among the most popular, which subsequently makes silver, copper and natural gas seem like logical additions to the list. But did you know that the second most popular commodity in the world is coffee? It also the most popular organic commodity, and one of only three in the top 10. The other two are wheat and sugar. 

Alternative commodities also do very well on the global market, although none of them reached the top 10 of the past 6 years. Diamond is one of those alternatives.

How did diamond value compare to the most popular commodities over the past years?

Commodities are always a valuable asset allocation for your portfolio, but many of them do seem to have had a rough 6 years. Almost all commodities suffered considerable losses since 2011. Coffee lost 42,58% and crude oil 41,32%. Precious metals complement the list with losses between 13,83% for palladium and 48,12% for silver. The biggest loser turns out to be iron ore, with a staggering loss of 53,09% over the same period.

Those numbers greatly contrast with the increasing diamond value. Fancy coloured diamonds rose in value with an incredible 73,91% since 2011, surpassing all other commodities.

How do I go about investing in commodities?

Asset allocation goes beyond dividing your capital over several types of investments. Each investment type needs to be broken down into specific investments as well. The same goes when you plan on enjoying the profits that the rising diamond value yields. Firstly, you need to match your investor profile to make sure you buy the perfect diamonds for your portfolio. A dynamic investor can easily opt for the rising fancy coloured diamond value. They will be more difficult to liquidate than less rare diamonds because of their high price but will generate far more profits. The conservative investor will find the less rare colourless diamond the perfect addition to their portfolio.

Never forget to seek advice from an expert for any investment. Which diamond holds the most value for my portfolio? Contact the diamond experts at BNT Diamonds for the perfect addition to your portfolio.

Author: Inge De Wee
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.


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