The fact that the election victory of Donald Trump as President of the United States has international implications has soon become apparent in the first months of his term in the office. But how can political decisions affect the price of diamonds?
Donald Trump gained fame as the most popular businessman active in various sectors. Besides real estate (The Trump Organization) he is also active on mortgages, perfume, books, fashion, travels, videogames… Not all activities were equally successful, but at the end of the road, the net worth of its investment portfolio increased.
If Trump as president is as successful as in the business world, this will benefit the US economy, jobs will be created and debt will decrease. This will enable consumers to buy and invest more and more. The stock market will rise, which benefits prosperity. Investors will increase the proportion of diamond in the investment portfolio, which will increase the price of unique investment diamonds.
If Donald Trump does not act well as president (for example, due to the lack of political experience) US debt will continue to rise and the economy will suffer. Investors will therefore seek fixed assets to protect their wealth and ensure return on investment. The demand for the rare Fancy colored diamonds will rise, just like the price. This is a similar situation to the 2008 economic crisis, where the financial markets were untidy and, in addition to the demand, the prices of the most rare types of diamond rose.
The price of diamonds is expected to increase steadily over the coming years and decades. Not just the crisis resistance makes diamond a safe investment with a guarantee of return. Also, the growing demand from the BRIC countries for investment diamonds and the declining supply due to the limited natural resources pushes the diamond price up.
Whoever is looking for a safe investment with profitability can always contact BNT Diamonds experts. Feel free to contact us and we will discuss your investment plans.
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