Diamond Fund

Here’s good news for all investors and wealthy people interested in diamonds! A first of its kind a diamond fund is being set up in London that will invest only in diamonds. The firm wishes to invest both in colored as well as white diamonds. The demand for large diamonds is increasing and so is the price. In case for white diamonds, the size matters a lot - larger the diamond more valuable it is. There are chances of greater number of flaws in case of large diamonds and therefore lesser the number of flaws more the value of the diamond. Large flawless diamonds are also very rare to find.

Investing in diamonds has become a trend with more and more affluent people investing in diamonds than in other kinds of investments because of the volatile market. Diamond prices have increased in the last six months by almost 30% because the demand of larger diamonds has increased than its supply. The newly created fund is mainly because of huge profits that are coming from diamonds.

The price of diamonds in the auctions has increased by a whopping 20% to 30%, much more than expectation. So, the focus of the diamond fund would be on large and rare diamonds. The diamond fund which has been formed will buy diamonds from private persons and through large auctions. It will also acquire diamonds from diamond mines as well. The fund will mostly aim at wealthy investors who want to add a variety in their investment portfolio. The diamond fund which is the first fund to be listed publicly is also expected to attract huge interest. Though the details of the fund haven’t been divulged publicly, it is believed that quite a few investors have shown their interest. It will also take the help of gemologists to determine the value of the diamond. The diamond fund will now be a part of every diamond auction. The most sought after diamonds are large and rare ones with the least flaws. Most of the world’s famous diamonds are not for sale and are in private possession. If this diamond fund proves to be successful in the coming months, many more similar diamond funds are sure to come up. However, to master this investment is to know the right time to sell these diamonds. Prices of diamonds will always rise, so it is mostly a long-term investment.