Diamonds and silver - more similar than you may think

mmissinglink

mmissinglink

Active Member
Let's compare the 2 commodities:



Diamonds: price fixing for this commodity happens
Silver: price fixing for this commodity happens



Diamonds: many of those who are invested in buying this commodity complain of manipulation of the market for diamonds
Silver: many of those who are invested in buying this commodity complain of manipulation of the market for silver



Diamonds: today, price driven significantly (though not exclusively) by supply and demand (http://www.nasdaq.com/article/a-deeper-look-at-the-world-of-diamonds-cm272114)
Silver: today, price driven significantly (though not exclusively) by supply and demand



Diamonds: has been used as a medium of exchange (http://www.nydex.com/history.php)
Silver: has been used as a medium of exchange



Diamonds: has been used as a store of wealth
Silver: has been used as a store of wealth



Diamonds: there's no shortage in the world of this commodity
Silver: there's no shortage in the world of this commodity



Diamonds: in a time of real crisis, most people couldn't care less about it
Silver: in a time of real crisis, most people couldn't care less about it



Diamonds: it's investment demand is largely sentiment driven
Silver: it's investment demand is largely sentiment driven



Diamonds: has no intrinsic value though has intrinsic characteristics or properties
Silver: has no intrinsic value though has intrinsic characteristics or properties



Diamonds: is represented in the paper markets by at least 1 ETF
Silver: is represented in the paper markets by at least 1 ETF



Diamonds: has industrial uses
Silver: has industrial uses



Diamonds: people have gotten killed over the possession of it
Silver: people have gotten killed over the possession of it



Diamonds: products made from high grades of this commodity can have very high premiums
Silver: products made from high grades of this commodity can have very high premiums



Diamonds: used often in jewelry
Silver: used often in jewelry



Diamonds: very highly thermally conductive
Silver: highly thermally conductive



Diamonds: knife blades can contain it
Silver: knife blades can contain it



Diamonds: shiny :)
Silver: shiny :)



Diamonds: one ton of diamonds weighs the same as one ton of silver :lol:
Silver: one ton of silver weighs the same as one ton of diamonds :lol:



ADD MORE HERE:
Diamonds:
Silver:





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Diamonds: Gave ring with 5ct (1g) diamond to my GF. Answer: YES
Silver: Gave ring with 5ct (1g) silver bar to my GF. Answer: Oh neat a secret decoder ring?
 
for Diamond, dear, remember when I put the diamond ring on your smooth skin finger??? that was 50 years ago, now you no longer wear the diamond. :lol:

for silver, Son, this is our inheritance to be passed on for ever, I got them when I was 12 from my father, Now I am passing them to you and so you should passed them on to your son and his sons etc...
 
Diamonds: Buy $10,000 worth of diamond and you can sell them for about $1,000 the next day (if you are lucky and know what you are doing)
Silver: Buy $10,000 worth of silver and you can sell them for about $9,800 the next day
 
Diamond: Your house catches fire, you end up with ashes.
Silver: Your house catches fire, you end up with blobby silver.
 
billybob888 said:
Diamonds: Buy $10,000 worth of diamond and you can sell them for about $1,000 the next day (if you are lucky and know what you are doing)
Click to expand...

if you know what you're doing it's actually the opposite. There aren't many people in that circle though, so for the average joe diamonds almost always end as a horrific investment.
 
I think buying and selling diamonds requires a lot more specialized knowledge than silver. You need to know the four Cs and truly understand them. You also need to find a place that sells them at wholesale prices to make any profit. Buying a nice big certified diamond from a mall store is never going to make you any profits. The mark up is crazy. I dated a girl for a long time who sold jewelry at a retail store. After one year of service they gave her a 70% discount off of the retail price. She stayed for a long time because it was a pretty awesome deal. She had a lot of nice bling. The company STILL made profit off of her! I think it is like any speculation or investment, you can make some very good money (and many people do) but you need to know what you're doing.
 
Your forgetting that diamonds can be fabricated. They add it to metals and make diamond alloys for industry. You can't fabricate a natural one yet, but Moore's law will insure that we will be able to well before we can fabricate Ag.

Also, diamond market is dominated and controlled by one company in Europe who hoards like 90% of all diamonds and releases them into market slowely and controlled so as to stabilise and sustain a price. Been like that for like 50 years.
 
Silver and Diamonds united together: http://www.ebay.com/itm/2002-Cook-I...1088?pt=UK_Coins_World_RL&hash=item2338c970e0

(that's not my coin nor am I affiliated with the seller)


8838_crown_jewels_silver_locket_coin.jpg





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If the diamond cartel would release all their diamond supply to the open market there would be little to no value.

Silver is used in a much bigger industry then diamonds are.
 
Ruby's & Saphires if you want "REAL" valuable stones ;)
Diamonds are only good for cutting glass :lol: :lol: :lol:

And a 1kg silver bar always makes a good projectile :o
 
One big issue I have with diamonds, is the fact that even the best experts can argue over the true value of a diamond - and there is no reliable standard by which one could determine the precise value of his "stack" on a given day.

Silver, on the other hand, has a specific purity and weight, so it's value can be immediately quantified at any moment, without the need to haggle.

Silver is what it is: An expert's opinion is irrelevent, and for my purposes, having the ability to liquidate or trade with ease, is a distinct value in itself.
 
Diamonds do not fit the definition of a commodity.

Diamonds are not fungible; stone of the same mass can have radically divergent market values due to coloration/clarity factors and other unalterable characteristics (or at least, not economically viable to alter).
The market at-melt value of any comparable 999-fine silver bar does not differ greatly.

Diamonds are not divisible; a single 1 carat stone is worth much more than ten 0.1 carat stones combined.
The market at-melt value of a 100 troy ounce 999-fine silver bar is 10 times that of a comparable 10 troy ounce 999-fine silver bar.
 
"Diamonds: it's investment demand is largely sentiment driven
Silver: it's investment demand is largely sentiment driven"

Here is another point that I would question: I don't know what goes on in the minds of industrial users and electronics manufacturers, when they are designing components that will contain silver, but I would guess that their sentimental notions regarding silver, don't weigh heavily in their decisions to make use of the metal - they are more likely satisfying other criteria.

In addition, speculating on the future value of a diamond, seems like a fool's game, when the diamond cartels are ready to meet any demand scenario, in an effort to keep the price constant and stable. There certainly is no shortage of diamonds, and any industrial demand for diamond's qualities, can usually be met with synthetic substitutes.

My feeling is that the only way you are going to realize a decent profit from an investment in diamonds, is to find a greater fool than yourself, who believes that the commodity is going to be scarce, and thinks he can find someone else, who is equally deluded, to sell to for an even greater profit.
 
Diamonds have a lot less industrial use then silver does.

Diamond blades etc.

When silver is used in a lot of electronics like Ouija said etc.

I do not understand why someone should invest in diamonds.
 
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