Edward Sterck, an analyst at BMO Capital Markets, believes that the average price for diamonds will rise 9% to $145 a carat during 2012, which translates to around £95. In addition to these figures, it is predicted that the price will climb 1.4% in 2013 and again by 4.8% in 2014.
In contrast to these figures, gold is expected to decrease for a three year period from 2013, after seeing a 19% gain in 2012. These statistics mean that diamond prices will continue to grow and become a more favoured form of investment.
It is believed that the rise of the middle classes in countries with emerging wealth, such as China, has resulted in an increasing number of people spending money on luxury goods. This is having a dramatic impact, and it is believed that demand for diamonds could grow at double the rate of supply during 2020.
According to the Rapaport Diamond Trade Index, prices for the best diamonds rose 23% this year which was the biggest advance since 2006. Diamond prices have increased over the past ten years and the forecasts show that this will be a continuing trend. As a form of investment, diamonds are performing far greater than alternative options such as real estate, currency trading and gold.
Francis Bauer, Senior Broker at Stone House Global Markets said: “Although these figures are only forecasts, we believe that there will be a healthy growth in the market for diamond investment and prices. It’s an exciting time to be working in the industry and despite the current economic conditions around the world the diamond market is still going strong.”
“As a company we provide solid advice on the best diamonds to invest in. Diamond investment is an excellent way for investors to diversify their portfolios, so we are hoping that we will gain more customers in the coming months as the interest in diamond investment becomes more prevalent.”
For more information please visit their website: http://www.stonehouseglobalmarkets.com
About Stone House Global Markets
Stone House Global Markets are an international diamond investment company based in the City of London. With their team of experienced individuals they offer clients the chance to develop unique portfolios and generate a return on investment for standard traditional and coloured diamonds. For more information visit the website - www.stonehouseglobalmarkets.com