China, India and US to drive diamond demand, expert says
Investors who want to diversify their portfolios might find diamonds a brilliant option.
Unlike other assets, diamonds are not affected by price movements in stocks and commodities, David Riedel, president of equity research firm Riedel Research Group, was quoted as saying by CNBC Asia.
Riedel noted that diamonds showed “very low correlations to other assets” in the last decade, underscoring these gems’ viability as an investment vehicle.
The expert also predicted that demand for diamonds would grow by as much as 50 percent – fuelled by consumption in the US, China and India – between now and 2015 while production would only increase by 24 percent.
"Diamond mines tend to be most productive near the surface, and like a funnel become less productive as you go deeper," Riedel was quoted as saying.