What you should know about diamonds ?
Who has not heard of the advertisement campaign of all time - A diamond is for ever. With the increasing purchasing power of the population and following the Americans by the tech geeks, it has become fashionable nowadays to present diamond studded rings to near and dear ones especially lovers. This emphasizes the old age belief that diamonds represent symbol of love and romance. Do you think diamonds are a better form of investment, apart fro m its romantic value. Any one will say when they hear about diamonds that diamonds are used for rings. Here are few points one need to know about diamonds. With the increase demand for diamonds in India itself, it is a booming business in places where IT is located.
The diamond trade is cartel led by De Beers, founded by Cecil Rhodes. In other words the single channel marketing of diamonds world wide is done by De Beers, who mines, sells and distributes diamonds. The extraction of diamonds from mines is quite laborious Artificial scarcity is created and diamonds are sold in small quantities. Kohinoor diamond is world famous. Who has not heard of Kohinoor diamonds ? Diamonds are priceless as long as one does not try to sell it. For information there are many exporters of cut and polished diamonds especially Mumbai – these exporters have to follow rules set by De Beers. They purchase rough diamonds at what is known as "sights" in London, import, polish and export to other places including Antwerp. USA and Japan, profit being value addition.
Do diamonds make good investments – The answer is a positive no unless you are a trained and experienced trader. Reason is simple – you buy at retail but when you sell, it is at wholesale rate. The price of diamond is kept artificially high - notwithstanding one loves diamonds which are too fascinating.