Sean Brodrick: All that glitters isn’t gold… but can still be worth a fortune to investors. For example, I have my eye on a sparkling commodity that’s taken its licks this year but looks like it could have a stellar 2014. It’s not gold. I’m talking about diamonds.
And diamonds have been selling cheap.
According to PolishedPrices.com, the price index for polished diamonds has gained 1.7% since the start of 2013. But that comes after a slump last year. Diamonds are still down from last year’s peaks. And RBC Capital Markets recently issued a report on the “tough times for rough diamonds.”
But there is good news for diamonds.
Russia-based Alrosa, the world’s biggest diamond producer, expects diamond prices to jump in 2014. Alrosa anticipates that production will fall, and demand will rise.
What’s more, you can buy stocks of companies that make money on this commodity when it goes up… and make even bigger profits when it goes down.
That latter group is having a great 2013. And those companies should have a great