2016 has been a challenging year for many of us in the investment community. With our desire to conclude it on a positive note, we are delighted to share with you the main conclusions from our latest Diamond Investment Research Report - the third in its kind - we carried out in collaboration with Prof Dr Luc Renneboog of the Tilburg University, a world known specialist when it comes to alternative assets. 

In a world with rising social, geopolitical, military and economic tensions, investment grade diamonds are again playing the role that they have traditionally played in confusing times, namely offering a true diversification versus other asset classes, a genuine store of value

 

The key conclusions of the report:

  • Over the period 1999-2015, the annual nominal USD returns for white and coloured diamonds amount to 5.3% and 5.0%, respectively.
  • Diamond returns by unit of risk (the reward-to-risk or Sharpe ratio) significantly outperformed the US & European stock markets and a diversified global stock index.
  • Diamond returns are only weakly correlated with equity returns, and the correlation coefficient goes down in times of financial crises, which suggests that diamonds have a compelling diversification potential in investment portfolios.
         The chart above shows the evolution of diamond prices and stock indices (indices are in real 2016 terms)

         The chart above shows the evolution of diamond prices and stock indices (indices are in real 2016 terms)

For more details or a copy of our research report, please contact us or send us an email to the contact details at the bottom of this page.

 

Over the years, we’ve been successfully offering bespoke solutions for high net worth individuals to invest in diamonds or buy them at best prices and we sincerely take pride in the fact that in our benchmarking we consistently scored best, including on best practice sourcing.

Don't hesitate to contact us for any query or question you may have. Next to single stones, we assist people on their jewellery needs, once again at unbeatable price versus quality.

Finally, we would like to take this opportunity to thank all our clients, business partners and friends for all the achievements and good times in 2016 and we look forward with great ambition to 2017 !  In the meantime, we wish you and your families a Merry Christmas and a Happy New Year !

With our best regards

The Rocks International Team

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