Diamond Fund Promises Sparkling Investments

by Deidre Woollard (RSS feed)
Feb 19th 2009 at 10:02AM

They say diamonds are a girl's best friend but are they a good investment too? Investors in gold often thrive in an uncertain market and now a new fund is set to offer access to physical diamonds as a form of secure investment. The KPR diamond fund is betting on the price appreciation of high-quality colorless diamonds. The fund is part of KPR Fund and launches on March 2 2009 with a minimum investment of $250,000. As Wealth Bulletin reports, Investors can also purchase stones on selected diamond sales by the fund at a wholesale price. This isn't the first fund of its kind, Russian investment group Alfa Capital also recently launched a diamond investment fund. Unlike gold, diamond prices have been falling recently. Whereas gold prices are relatively uniform, diamond prices depend on the size and quality of the stone. While the big ticket rare stones have continued to hold their value, countries that export polished stones around the world have seen their numbers tumble.

Tags: diamonds, investment