by Jerry Robinson and Jennifer Robinson | FTMDaily.com
Back in March, the investment world learned that New York-based investment firm IndexIQ had filed paperwork with the Securities and Exchange Commission to market a new ETF backed by white diamonds. This ETF would be the first of its kind and demonstrates the growing investor demand for commodities amid growing uncertainty about the future of the global economy. According to the latest news, the SEC is still mulling over the idea.
Regardless, the fact that investment grade diamonds may soon be accessible to anyone with an online trading account means that demand could heat up by year's end. Diamonds have a long track record for providing fantastic returns, as they have increased in value by an average of 13.8% every year since 1938. China and India are two of the world's largest buyers of diamonds. And, as the story often goes these days, just as global demand appears to be increasing, supplies are plateauing. According to a report by Bain & Co, diamond demand in carats will rise more than 6 percent a year until 2020, outpacing the 2.8 percent annual growth in supply. You can read similar reports here.
The following are 16 reasons why diamonds may be the ultimate crisis investment, and why diamonds may even surpass gold returns.
#1 Based on growing global demand, especially from China and India, De Beers expects demand for rough diamonds to hit a new record in 2012. As the middle class continues to grow within emerging nations, De Beers expects China, India and the Middle East to account for 40% of global diamond demand by 2015.
#2 Diamonds have been held by savvy investors throughout history to protect against the ravages of hyperinflation. The most recent example of this occurred in the hyperinflation that struck Zimbabwe.
#3 The portability of diamonds is more favorable than that of gold or silver. A diamond investor can carry a million dollar portfolio in his shirt pocket, whereas the same amount of gold can be a challenge to transport. Try boarding an airplane with a million dollars of gold or silver!
KEEP READING…
If China’s consumption rate of commodities continues growing at the same rate that it has for the last 10 years, this is what 2020 will look like…
Gold, platinum and Brent oil will lead gains in commodities as investors seek to protect their assets and shortages emerge, according to Tony Hall, the hedge-fund manager who earned 33 percent for his clients this year.
Read the article…
The saying “all that glitters is not gold” might not be the case in the investment world these days.
Read the article…
European banks and governments are moving to restrict personal gold bullion purchases. The noose is tightening.
Read the article…
Corn futures are up 98 percent, wheat gained 67 percent, raw sugar advanced 44 percent, and rice jumped 25 percent.
Podcast: Play in new window
| Download (Duration: 27:48 — 19.7MB)
Listen as FTM Weekly Radio Host, Jerry Robinson, interviews commodities expert, Rick Rule. In this interview, Rick Rule explains how the average investor how to navigate the tumultuous landscape of the commodities markets. Topics include: gold, silver, agricultural commodities, energy, and water. Enjoy!
One of the greatest – and most imminent – challenges looming on America’s economic horizon is the threat of global peak oil production. You may have heard of the phrase “peak oil” from television, newspapers or other media sources. But what exactly does the phrase “peak oil” mean? Well, just like everything else, there is a simple answer and a more complex answer.
Today, our entire global economic infrastructure — not just America’s — has been built and designed around petroleum-based products. In fact, our entire way of life today would be virtually impossible without the amazing properties that we find within petroleum. Oil has become largely irreplaceable in today’s exploding global economy.
Podcast: Play in new window
| Download (Duration: 10:33 — 9.7MB)
Here’s a flashback from one of our FTMWeekly Financial Radio shows from June 2010. In this audio clip, Jerry Robinson shares a snippet from the popular Christian financial radio program, the Dave Ramsey Show, where Dave completely trashes gold as an investment as well as popular economist, investment advisor, and best-selling author, Peter Schiff.
by Eric Hammer | FTMDaily Contributing Writer TEL AVIV, Mar 11 – In yet another sign of the growing importance of the Chinese economy on the world stage, Chinese consumers have been snapping up gold in record numbers recently with consume demand reaching more than 200 tons this past year and combined government and consumer [...]
by Eric Hammer | FTMDaily Contributing Writer TEL AVIV, Mar 7 – Since 1971, American money has been valuable only because people perceive it to be valuable since the American government officially backs it. Prior to that, American money had a kind of intrinsic value as well – it was backed by gold held in [...]
SeekingAlpha.com The paper-driven sell off in the gold market seen in January has been trumped by continuing robust physical demand in January and February. This has resulted in gold rising nearly 6% in February and silver’s strong industrial and investment demand leading to a 19% rise to new nominal 30-year highs. Gold in USD – [...]
by Eric Hammer | FTMDaily Contributing Writer TEL AVIV, Feb. 24 – The world has been watching and waiting to see what would happen with the Middle East Crisis for the past few weeks now, ever since Tunisia managed to overthrow their leader and declare an age of democracy in that country. The protests quickly [...]
by Eric Hammer | FTMDaily Contributing Writer TEL AVIV, Feb. 22 – Is now the time to be investing in natural gas? I’d have to say that it definitely is. I think the biggest reason why natural gas is set for an explosion in prices (no pun intended) is what’s been happening in my neck [...]
by FTMDaily.com HOUSTON, Feb. 18 -For the first time ever, cotton prices reached $2 per pound in New York yesterday. Increasing global demand and shrinking supplies drove the commodity to all-time highs. In the wake of global financial crisis, global consumption has begun growing again — especially for textiles and apparel. The demand for clothing and [...]
Bloomberg | By Ranjeetha Pakiam - Jul 7, 2010 Investors should sell bonds and buy commodities like silver and rice as a “refuge” as the world economy may continue having problems, Jim Rogers, chairman of Rogers Holdings said. Chairman of Rogers Holdings Jim Rogers. Photographer: Seokyong Lee/Bloomberg “Bonds are not a good place to invest in,” Rogers said at [...]
By ROB GILLIES (AP) – 16 hours ago TORONTO — Canada thinks it can teach the world a thing or two about dodging financial meltdowns. The 20 world leaders at an economic summit in Toronto next weekend will find themselves in a country that has avoided a banking crisis where others have floundered, and whose [...]
By Javier Blas in London | Financial Times Published: June 15 2010 18:51 | Last updated: June 15 2010 18:51 Food commodity prices will increase more than previously expected in the next decade because of rising energy prices and developing countries’ rapid growth, two leading organisations said on Tuesday, worsening the outlook for global food [...]
By JAMES RISEN | New York Times Published: June 13, 2010 WASHINGTON — The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself, according to senior American government officials. The previously [...]
CLICK HERE TO LISTEN NOW Time to Buy the Euro?: On this week’s program, Jerry Robinson provides his insights concerning the U.S. National Debt, the price of gold, along with an in-depth look at the other important headlines of the week. Our special guest interview is with Tim W. Wood, CPA (Cycles News and Views [...]
(Business Insider) China’s Baoshan Iron & Steel (60019 CH), the largest listed steelmaker, has cut its steel prices for the first time in eight months. You know demand has to be pretty weak for them to cut prices, since they’re being squeezed from the cost side due to higher iron ore prices at the same [...]
