Westbury, New York (PressExposure) March 21, 2012 -- http://www.BiDiamonds.com - Belle Ideale Diamond's experts released, "The Truth about Diamonds as an Investment"
At the beginning of each year, Belle Ideale Diamond Company produce a study for their clients entitled "The Truth about Diamonds as an Investment" that highlights the short and long-term appreciation (or depreciation) results of diamonds for the prior year and the previous ten years. This is completely compared results to popular, alternative investments to make the report more valuable and interesting.
To insure the research is correct, they consult the Rapaport Diamond Report, an internationally acclaimed publication that monitors and reports the pricing action of diamonds. Rapaport takes no position relating to the merit of diamonds as an investment, but simply reports the results of its research. The opinions and investment analysis contained in this report are solely those of bidiamonds.com.
Brief points of the report released by Belle Ideale diamonds is here -
Review of 2011
2011 was a year that clearly demonstrates why you need to invest in select diamonds on a long-term basis.
The prices of all sized investment grade diamonds soared in the first 6 months of the year, due to trader and manufacturer speculation, international fiscal problems in Europe and the US, currency fluctuations and the expectation of high consumer confidence. Prices of some diamonds increased as much as 40% in the first half of the year, with 30% being the average. To add to the rising prices, miners required higher prices for their diamond rough.
The second half of the year could not have been more different. Consumer confidence and demand fell because of the continued difficulties with the US and European economies.
Traders and manufacturers were left with large amounts of high priced inventory resulting from aggressive buying during the first half of the year. Due to slacking consumer demand, dealers had to reduce prices to attract customers and satisfy their banking requirements by reducing large inventories. Miners also reduced the price of their diamond rough due to reduced demand, further aggravating price declines. All of these factors contributed to an overall average price decline of approximately 12% to 13% in the second half of the year.
For the year, overall price appreciation for diamonds averaged about 19%.
A short-term trading anomaly occurred with the pricing of smaller diamonds during the year. Historical appreciation rates for smaller diamonds (.5 carat and 1.0 carat) have been lower than returns of larger size diamonds (3 carat & 5 carat). Last year, the appreciation rates of smaller diamonds actually exceeded those of larger diamonds, with the exception of 3-carat sizes.
Report of Belle Ideale Diamonds also include "Outlook for 2012"
There is a short-term trading strategy in the securities markets that advises, "Don't fight the tape". In other words, do not buck the trend. As we commence a new year, the same international political and economic factors that prevailed in the final 6 months of 2011 continue into 2012. Investors are advised to proceed cautiously, preserve liquidity and be prepared to take action at lower possible prices.
Long-term investors are also advised to proceed cautiously and look for favorable buying opportunities. If you do make an investment, you have comfort in knowing that patience should reward you in the long term.
We expect that pricing of diamonds for the first half of the year will be flat to slightly down, in sharp contrast to the previous year, due to reduced speculative buying and a return to more normal buying activity.
It is possible to see increasing prices form the middle to the end of the year, but nothing that resembles the price increases of 2011.
Diamond miners will likely maintain their 2011-year end prices of diamond rough for most, if not all, of 2012.
The author of this report: Paul Buchanan is a Graduate Gemologist, Graduate of the American Institute of Diamond Cutting and has 30 years of finance and investment experience. You contact him at 760-268-0100 or firstname.lastname@example.org