The pandemic adversely impacted sales of most non-digital goods and services, other than staples like groceries and toilet paper. Diamonds and other luxury goods were among the categories that took a significant hit during the downturn.
But the sparkle in diamond prices may be back.
Prices of polished diamonds are at their highest level in over a year, and are up 5.1% from their low point in March. According to research firm Diamond Analytics, "this is the most bullish market for diamonds...in a decade." For traders and investors thinking about dropping a new to propose to a loved one this year, you better check the price of diamonds first!
Since diamond and jewelry retailers have begun reopening (particularly in Asia), demand for diamond jewelry has shown surprising resilience. One reason why: instead of spending money on lavish vacations and other international pursuits, wealthy individuals are turning to jewelry instead. According to Diamond Analytics, a one-carat polished diamond of above-average quality currently goes for $5,900, which is well over 10% higher than just a year ago.
The economic resurgence expected later this year could create tailwinds for other precious metals and minerals, and investors may want to turn their attention to commodities as a possible trade for 2021. Below, Tickeron's Artificial Intelligence lays out the bull and bear cases for the metals and minerals industry.
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.