Diamonds look rock solid, says Charles Stanley
Diamonds are more than a girl's best friend - they could be a great investment, says Charles Stanley.
The broker argues that the diamond market has "entered a long-term structural bull phase" - City speak for "will keep going up". It adds: "Prices have begun 2011 with unabated enthusiasm."
Most metals have boomed in the past few years. Sceptics keep predicting a crash, but they have been wrong so far, and investors are weary of stocks and bonds, so are desperate to chase other investments that offer a return.
"Investment-grade gemstones continue to defy gravity as investors use diamonds as an inflation hedge," notes Charles Stanley's Kieron Hodgson.
The broker seems to acknowledge that risks exist. Its report's title is Almost Too Good to Be True.
