Investors ‘turning to rare diamonds’
Tuesday, October 19th, 2010
Growing numbers of investors are looking to purchase rare diamonds as a hedge against economic uncertainty, according to one auctioneer.
Rare diamonds are growing in popularity among investors who want to protect themselves against the volatile financial markets, it has been suggested.
Speaking to Reuters, head of the jewellery department at Christie's in New York Rahul Kadakia noted prices for diamonds and coloured precious stones have risen 20 per cent in the last year as a result.
An event being held by the auction house that will see more than 450 items of jewellery go under the hammer is expected to raise at least $40 million (£25.1 million) this week and Mr Kadakia explained "a lot of people" are choosing to invest their money in gems.
"Investors and clients who enjoy jewellery have started purchasing important diamonds and gems as a hedge against what's going on in the stock market," he remarked.
Among the items going up for sale at the event on October 20th is the Bulgari Blue, which, according to the auction house, is the "largest triangular-shaped Fancy Vivid Blue diamond ever offered at auction".
