Elite Gems Poise Gleaming Question - Will Diamonds Out-Perform Gold in 2012?Reported by PRWeb on Saturday, 9 June 2012 (on June 9, 2012)
With the markets forecasting a year that’s set to put diamonds and gold on a level playing field, could diamonds actually out- perform their precious metal cousin?
London (PRWEB UK) 9 June 2012
Not too many an investor would group both diamonds and gold into the same bracket of potential success. With many investors playing gold with varying motives, some could be put off by diamond’s inability to hold a spot price.
Diamonds may also be initially considered as confusing. With the asset divided into rough stones, investment diamonds and special/rare diamonds, the pricing forecasts are often unreliable – even though estimates for rough diamonds price increases currently lie between 5 and 10 percent.
However, The Bain Report is publishing promising numbers, with rough diamonds showing steady growth of around 3 percent each year.
One expert, Mayfair’s Ansar Ali, CEO of Elite Gems, has this to say:
“Over the past decade, diamond prices have been highly correlated to gold prices. But, the past 24 months gold has been heavily influenced by global macro-economic uncertainty and inflationary risks.”
“Although these factors influence diamond prices, they do so to a lesser extent. Demand and supply have been the main drivers for diamond price movements” he adds.
The demand for diamond is set to increase by around 6 percent a year until 2014. This growth is likely to be influenced by Asian demand, especially from India and China.
However, economic conditions cannot be discounted completely. Bain’s report says the global diamond jewelry market moves parallel with markets for luxury goods and other jewelry.
The bulk of Asian demand is predicted to come from jewelry. The positive economic conditions in the region should provide a visible hike in diamond prices. However, those looking to invest are advised to remain focused on any possible economic decline reports.
This growing demand also risks outstripping supply. To counter this, diamond production is expected to increase throughout 2012.
According to Ali, demand of investment-grade diamonds is already outstripping supply. “This has been the case for the past 5 years. These conditions are expected to continue in the medium term as there has not been any world class diamond mine discovery in the last decade to shift the supply curve– a factor that adds to optimism surrounding diamonds’ performance” he adds. However, the outlook for diamonds as an investment is positive for the remainder of this year. “The best diamond play is to invest proportionately in investment and special/rare diamonds” concludes Ali.
About Elite Gems
Elite Gems (http://www.elitegems.co.uk) based both in Mayfair, in the heart of London, and various cities around the World is a unique international boutique diamond investment company offering its clients discreet and professional services. Elite Gems mission is to educate, source and supply the most exclusive and beautiful natural fancy coloured diamonds. With over 100 years combined experience in the industry, Elite Gems has been providing the world’s most portable and concentrated form of wealth with knowledge and discretion. Unparalleled resources, reputation and expertise are why Elite Gems is a trusted supplier to international clients and global private investors. Elite Gems serves its sophisticated clientele with dedication to excellence. That is why both world-class diamond investors and serious collectors rely on our expertise. Elite Gems does not deal in Conflict Diamonds (Blood Diamonds)
For more general information, please visit: http://www.elitegems.co.uk
Telephone: + 44 207 7607564
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