| Diamonds As An Investment |
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This article discusses the use of diamonds as an investment. HISTORY Diamond s have been treasured as Gemstone s since their use as religious Icon s in India at least 2,500 years ago. Their industrial usage in Drill Bit s and Engraving tools also dates to early human history. Popularity of diamonds has risen since the 19th century because of increased supply, improved cutting, polishing techniques, and growth in the World Economy . Diamonds are not normally used as a mainline Store Of Value during times of economic crisis, due to their lack of Fungibility and low Liquidity . However, they may still be useful in times of Hyperinflation . Chemical Vapor Deposition is now used to produce Synthetic Diamond s which, unlike Cubic Zirconia s, require close inspection to distinguish them from natural diamonds. DIAMOND PRICE The diamond price has historically been controlled by De Beers Group , who have an estimated 45 to 80% of the market. Botswana is currently the largest producer of diamonds with mines operated by Debswana , a joint venture between De Beers and the Botswana government. However, over the last decade other producers have developed new mines, in Russia and Canada for example, challenging De Beers' dominance. De Beers raised diamond prices three times in 2004 by a total of 14%. Approximately 20% of mined diamonds are used in jewelry and 80% for industrial uses (such as lasers, drill bits and surgical equipment). The United States is the biggest consumer of diamonds in the world. The U.S. account for 35% of diamond sales, Hong Kong 26%, Belgium 15% ( Antwerp is the world's diamond-trading centre), Japan 6%, and Israel 4%. The price of diamonds fluctuate with global demand and the world economy. For example there was a slump in demand during the Great Depression . Diamond prices vary widely depending on a diamond's Carat , Color , Clarity , Cut and shape. METHODS OF INVESTING IN DIAMONDS Uncut diamonds Polished diamonds Diamond shares See Also: :Category:Diamond mining companies These do not represent diamonds at all, but rather are Shares in companies that mine diamonds. The largest diamond company in the world is De Beers , which is jointly owned by Anglo American (45%), the Oppenheimer family (40%) and the Botswana government (15%). Aber Diamond Corporation shares have significantly increased in price since 1993 {Link without Title} . TAXATION SEE ALSO EXTERNAL LINKS
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