The Return Characteristics of Diamonds
Posted: 2 Jan 2013 Last revised: 23 May 2014
Date Written: July 1, 2012
Abstract
We outline the ethical considerations surrounding the trading of diamonds, the metrics used to value diamonds, the history of diamond trading, and the current market structure. We provide an analysis of the underlying risk and return characteristics of several individual diamond types. We show that diamonds exhibit low CAPM and Fama-French betas and exhibit low correlations with gold, the S&P 500, long-term U.S. bond prices, and U.S. inflation.
Keywords: Alternative Assest Investing, Investing, Diamonds, Commodities
JEL Classification: G20
Suggested Citation: Suggested Citation
Small, Kenneth and Smith, Jeffrey and Small, Erika Engel, The Return Characteristics of Diamonds (July 1, 2012). Journal of Investing, Spring 2013, Vol. 22, No. 1: pp. 132-143, Available at SSRN: https://ssrn.com/abstract=2195728
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.