Investing in diamonds: pros and cons

Posted: Updated:
By Tami Hoey By Tami Hoey
By Tami Hoey By Tami Hoey
By Tami Hoey By Tami Hoey

PHOENIX – For some, investing in gold is so 2012! Many investors hoping to see their money grow are now banking on diamonds, as the value of the dollar and other currencies fluctuate. But is it a good idea for the rest of us?

Investor Dov Safir lost big in the real estate market. But now he’s turning to diamonds to turn things around. He bought one six years ago, and ended up making a $3K profit on it.

“I just sold it last week and i got a check for $9,500,” Safir says.

A report by Bain and Company is predicting diamond demand to double by the end of the decade, because of a bigger appetite for the gemstones worldwide. Keep in mind, though, that the report was commissioned by a diamond organization

Although it’s tempting, remember that there’s no uniform pricing guide for diamonds.

And only qualified investors can trade on the diamond market.

Bottom line: you're probably not going to make a lot of money buying up diamonds from a jewelry store. But if you have old diamonds lying around...the next few years could be a good time to sell them.