Hard assets

The return on rare diamonds and gems

L.D.R. Renneboog, C. Spaenjers

Research output: Contribution to journalArticleScientificpeer-review

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 languageEnglish
Pages (from-to)220-230
JournalFinance research letters
Volume9
Issue number4
DOIs
Publication statusPublished - 2012

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Diamond
Assets
Wealth
Auctions
Luxury
Real returns
Stock returns
Investment performance

Cite this

Renneboog, L.D.R. ; Spaenjers, C. / Hard assets : The return on rare diamonds and gems. In: Finance research letters. 2012 ; Vol. 9, No. 4. pp. 220-230.
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Hard assets : The return on rare diamonds and gems. / Renneboog, L.D.R.; Spaenjers, C.

In: Finance research letters, Vol. 9, No. 4, 2012, p. 220-230.

Research output: Contribution to journalArticleScientificpeer-review

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