Investors turn to diamonds

Guangzhou (CNS) – "Diamond prices are much higher now", confirmed Chen Zhenrong, a Guangdong resident who paid 50,000 yuan for her diamond wedding band over one year ago and now finds the price of that same kind of ring has soared to 70,000 yuan.

An employee at the store Diamond Family on Beijing Road in Guangzhou said a diamond of 0.3 carat tagged at 7,000 yuan in the beginning of 2011 can now command over 10,000 yuan. The price of a high-quality diamond boasts an even larger margin.

"We will likely increase diamond prices once more, on the national Tomb-sweeping holiday falling on April 2 to 4", the employee disclosed.

Since the real estate market became grim and the yuan was unstable, many investors are turning to the diamond as a way of freezing the value of their money, said Liang Muzhou, Vice General Manager of Guangdi Diamond Jewelry Company. He contended that retail costs of the precious 'rocks' will grow by 10 percent this year, and says this is a conservative estimate.

Investors should choose high carat diamonds, taking into consideration the color, purity, and cut of the stone, suggested expert Meng Zhiqiang of the Guangdong Jewelry Association.

Meng also reminded consumers of the high risk that accompanies a diamond investment, in particular the fakes offered by some disreputable stores.