Is there any financial instrument to “short” diamonds? I.e., bet that diamond (jewelry) prices will fall?
Dave asked:
If I suspect that diamond (jewelry) prices will fall, is there any way to “bet” on that eventuality in the financial markets or online gambling markets or through any other monetary transaction or mechanism? For example, if one suspects that gold prices will fall, one can sell gold futures. Is there something similar or economically equivalent for diamonds?
If I suspect that diamond (jewelry) prices will fall, is there any way to “bet” on that eventuality in the financial markets or online gambling markets or through any other monetary transaction or mechanism? For example, if one suspects that gold prices will fall, one can sell gold futures. Is there something similar or economically equivalent for diamonds?
May 6th, 2008 at 4:45 pm
There is not. Unlike gold/silver, diamonds are very abundant. Their price is manipulated and controlled by DeBears. I would not invest in any type of instrument such as you are describing.
Debears regularly adds/subtracts from the market for specific types of stones depending on what challengers are trying to do. Ie if a country tries to sell diamonds outside of Debear’s pricing mechanisms/controls. You could easily get killed with such an instrument.
May 8th, 2008 at 6:09 pm
Precious stones don’t have an open market on which to treaded, there are merely bought and sold in closed end transactions. If you could syndicate a large quantity of stones, like mining companies like De Beers does, you could manipulate or profit from price differentials. But without a free trading floor, there is no way to short sell stones.
May 11th, 2008 at 4:58 am
No.
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