An Examination of Diamonds as an Alternative Asset Class: Do They Have What It Takes to Make a Portfolio Sparkle?
The Journal of Wealth Management, Volume 15, Number 3, 67-74, 2012
Posted: 2 Jan 2013
Date Written: June 1, 2012
Abstract
We conduct an analysis of diamonds as an investable asset. We discuss the literature of alternative asset class investing and how diamonds fit into this investment framework. We examine the correlation of diamonds with several financial indices and a set of metal commodities and demonstrate the ability of diamonds to enhance portfolio returns through diversification. We conclude by demonstrating the ability of a diamond return index to provide superior risk-adjusted returns.
Keywords: Alternative Assets, Investing, Diamonds
JEL Classification: G12
Suggested Citation: Suggested Citation
Small, Kenneth and Smith, Jeffrey and Small, Erika Engel, An Examination of Diamonds as an Alternative Asset Class: Do They Have What It Takes to Make a Portfolio Sparkle? (June 1, 2012). The Journal of Wealth Management, Volume 15, Number 3, 67-74, 2012, Available at SSRN: https://ssrn.com/abstract=2195723
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