FTMDaily.com | by Jerry Robinson and Jennifer Robinson | APRIL 21, 2012
Back in March, the investment world learned that New York-based investment firm IndexIQ had filed paperwork with the Securities and Exchange Commission to market a new ETF backed by white diamonds. This ETF would be the first of its kind and demonstrates the growing investor demand for commodities amid growing uncertainty about the future of the global economy. According to the latest news, the SEC is still mulling over the idea.
Regardless, the fact that investment grade diamonds may soon be accessible to anyone with an online trading account means that demand could heat up by year’s end. Diamonds have a long track record for providing fantastic returns, as they have increased in value by an average of 13.8% every year since 1938. China and India are two of the world’s largest buyers of diamonds. And, as the story often goes these days, just as global demand appears to be increasing, supplies are plateauing. According to a report by Bain & Co, diamond demand in carats will rise more than 6 percent a year until 2020, outpacing the 2.8 percent annual growth in supply. You can read similar reports here.
The following are 16 reasons why diamonds may be the ultimate crisis investment, and why diamonds may even surpass gold returns.