Hard assets: The return on rare diamonds and gems

L.D.R. Renneboog; C. Spaenjers

doi:10.1016/j.frl.2012.07.003

Hard assets: The return on rare diamonds and gems

L.D.R. Renneboog, C. Spaenjers

Research output: Contribution to journal › Article › Scientific › peer-review

35 Citations (Scopus)

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Abstract

This note examines the investment performance of diamonds and other gems (sapphires, rubies, and emeralds) over the period 1999–2010, using a novel data set of auction transactions. Over our time frame, the annualized real USD returns for white and colored diamonds equaled 6.4% and 2.9%, respectively. Since 2003, the average returns have been 10.0%, 5.5%, and 6.8% for white diamonds, colored diamonds, and other gems, respectively. Both white and colored diamonds outperformed stocks between 1999 and 2010. Nevertheless, gem returns covary positively with stock returns, underlining the importance of wealth-induced demand for luxury consumption in collectibles markets.

Original language	English
Pages (from-to)	220-230
Journal	Finance research letters
Volume	9
Issue number	4
DOIs	https://doi.org/10.1016/j.frl.2012.07.003
Publication status	Published - 2012

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10.1016/j.frl.2012.07.003

1-s2.0-S1544612312000323-mainFinal published version, 242 KBLicence: Taverne

35 Citations
1 Chapter

Hard assets: The return of rare diamonds and gems
Renneboog, L. & Spaenjers, C., Sept 2015, The Global Diamond Industry: Economics and Development. Grynberg, R. & Mbayi, L. (eds.). London: Palgrave Macmillan, Vol. 1. p. 196-217
Research output: Chapter in Book/Report/Conference proceeding › Chapter › Scientific › peer-review

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Hard assets: The return on rare diamonds and gems

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Hard assets: The return of rare diamonds and gems

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