Factors Affecting the Price of Diamond Stock | BNT Diamonds
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Which factors influence the price of diamond stock?

15 Jul 21
  • What role does the economy play?
  • What influence does the quality have?

Diamonds are coveted worldwide due to their luxurious appearance, brilliance, and substantial intrinsic value. However, the diamond’s future value is the most crucial element for investors. What determines whether a diamond will go up or down in value? How much depends on the financial market and the diamond market’s specific features?

What role does the economy play?

Even though the economy plays a significant role in the price of diamond stock, this price only slightly reacts to economic fluctuations. This crisis-resilience is largely down to the diamond’s intrinsic value, which continues to be a worthwhile investment during times of crisis. The price of diamonds also fell the least out of all raw materials during major stock market crashes, like the one in 2008. Added to this is the considerable increase in economic prosperity, resulting from the increasing purchasing power and growing interest in luxury goods from the global middle class.

The market share of diamond giant De Beers’ also has a significant influence on the price. They will start mining less intensively in case of falling demand levels, which will allow the price to stay stable.

What influence does the quality have?

Whether a diamond increases or falls in value often depends on the quality of the diamond itself. Certified diamonds will very rarely drop in value. Synthetic diamonds, which can be artificially created, usually experience the opposite. That’s why we only recommend natural diamonds as investments.

Where can I find the right diamonds for my portfolio? What should I do if my diamond suffers a slight drop in value? Ask BNT Diamonds’ diamond experts for advice on your investment.

With this article, BNT Diamonds 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.