For many, diamonds evoke the spirit of luxury. But if these precious gems are really “forever,” what about investing in diamond stocks? With an annual global market worth a whopping $100 billion per year, companies involved with mining and selling these glittering gemstones could be quite rewarding for investors who take a closer look.
Top 4 Diamond Stocks in 2023
When it comes to diamond stocks, there are several options available. Depending on your investment objectives and risk tolerance, some diamond stocks may be more suitable than others. Here is a list of the best diamond stocks to buy:
De Beers Group
De Beers is the largest diamond producer in the world and has been for more than a century. This diamond giant is listed on both the London and Johannesburg stock exchanges and has a market capitalization of around $21 billion. As such, it is one of the best diamond stocks to buy for long-term investors looking for stability and above-average returns.
Another diamond mining giant, ALROSA is the world’s largest diamond miner by volume and holds a dominant position in the diamond industry. The company boasts an impressive portfolio of diamond production sites throughout Russia, as well as diamond trading locations around the world. ALROSA also has its own diamond-cutting factories, making it a great investment opportunity for investors who want exposure to diamond production, trading, and cutting.
LVMH Moet Hennessy Louis Vuitton
This French luxury conglomerate is better known for its fashion and fragrances, but it also has diamond mining interests. LVMH owns a majority stake in diamond producer Dominion Diamond Corporation, which has diamond operations in Canada’s Northwest Territories. It also owns a diamond subsidiary De Beers Group, though the company does not have direct diamond production activities.
Investing in LVMH stock gives you more than just access to diamond-focused brands. This “house of fashion” also offers exposure to high-end clothing and accessories, fragrances, cosmetics, champagne, wine, and spirits – all rolled neatly into one package. As if that wasn’t enough; it’s home to some of the most renowned jewelry makers around! So if you’re looking for a top notch international luxury business with diamonds on its roster – look no further than LVMH Moet Hennessy Louis Vuitton.
For those seeking to invest in diamonds without the risk associated with such operations, Rio Tinto is one of the best options. Not only is it a global mining giant and second-largest diamond producer worldwide; its subsidiaries include Diamond Trading Company International (DTCI), as well as interests in exploration projects all over. Boasting efforts on both sides of production, this stock offers investors an excellent way to gain exposure to diamonds while still remaining protected.
If you’re thinking of investing in diamond stocks, it’s very possible that you’ll make a profit – however, don’t forget to remember the risks. Diamond stock values are dependent on both market and gemstone industry conditions which can easily change at any time – so before you decide where to put your money into or not, be sure to do thorough research for each potential pick. If it’s been awhile since taking an extensive look into your investment accounts or has never invested before; compare different broker companies first to ensure that what they offer best suits your needs.
Heather Hachigian works as a research associate at the Carleton Centre for Community Innovation and as a consultant with Purpose Capital, where she helps investors identify opportunities and strategies for implementing their responsible investment programs.