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

See all articles by Kenneth Small

Kenneth Small

Coastal Carolina Univeristy

Jeffrey Smith

Virginia Military Institute

Erika Engel Small

Coastal Carolina University

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

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

Kenneth Small (Contact Author)

Coastal Carolina Univeristy ( email )

P.O. Box 261954
Conway, SC 29528-6054
United States

HOME PAGE: http://ww2.coastal.edu/ksmall/

Jeffrey Smith

Virginia Military Institute ( email )

Department of Economics and Business
Scott Shipp Hall
Lexington, VA 24450
United States

Erika Engel Small

Coastal Carolina University ( email )

P.O. Box 261954
Conway, SC 29528-6054
United States

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