- November 5, 2018
- Posted by: Mor Hazen
- Category: carats blog posts
After centuries of being one of the most exclusive markets, the full potential of the diamond industry is only now being unlocked thanks to the latest technological advances
Diamonds have been treasured by cultures around the globe for centuries. These shiny rocks have multiple practical uses as well as unique aesthetic value, which has kept the market for these stones steadily growing. However, as opposed to other commodities and investment opportunities (such as gold, silver, real estate and stocks) these rocks have remained limited to only a select few and been inaccessible to the wider public. The incredible complexity of standardizing the pricing and exchange of the gems were seemingly insurmountable obstacles to developing a global financial market for diamonds.
However, with the advent of sophisticated machine learning techniques and blockchain networking structures, diamond exchanges around the world are waking up to the possibility of developing a fully-functioning, widely accessible financial market for diamonds. As this commodity becomes unlocked to the wider public, investors and traders are watching keenly, waiting for diamonds to finally take their place among the most lucrative and robust investments.
So does investing in diamonds compare to investing in real estate, stocks, gold or other assets? While the rules and procedures governing the diamond market are similar to other traditional investments, there are a few key differences worth noting.
First, quite simply, investing in diamonds is a new opportunity. While the gems have been around since the dawn of civilization, only now are they being fully commoditized. In this way, an investment in diamonds is an exciting prospect. As opposed to other ‘new’ assets, diamonds’ value is historically proven, such that the risks of such investments are low. On top of that, as with any new, unlocked market, the potential for lucrative gains remain high. A number of financial reports point to expanding demand for diamonds as more industries begin utilizing them, along with increased consumer purchases of the gems in East Asia.
Second, as opposed to other assets, diamonds have a stellar track record. Diamonds is perhaps one of the only commodities to have been steadily rising in value for the past three decades. While the gains may be low, they are steady. This is important to understand – while diamonds may not see the volatility of other assets’ prices – they remain a reliable, robust hedge for investors. What else can match their track record of stable growth?
The final advantage of investing in diamonds is the relative simplicity of the physical asset itself. Although incredibly complex to evaluate and transfer in the past, the new, fully-digitized platform created by Carats.io has made trading in and following the global diamond market simple and accessible for all. While other sectors, such as real estate and agricultural crops require at least a basic understanding of the ins and outs of the industry, diamonds are simple to keep tabs on. Additionally, the asset itself is compact – what other asset can you carry thousands of dollars worth of in your pocket?
Interested in finding out more about the new and rising diamond financial market? Probably the best place to start is with Carats.io itself. Our site and Telegram group are both great sources for information and updates and provide great guides for getting in on the diamond market.