TY - UNPB
T1 - Hard Assets
T2 - The Returns on Rare Diamonds and Gems
AU - Renneboog, L.D.R.
AU - Spaenjers, C.
N1 - This is also CentER Discussion Paper 2011-056
PY - 2011
Y1 - 2011
N2 - This paper 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. Between 1999 and 2010, the annualized real USD returns for white and colored diamonds equaled 6.4% and 2.9%, respectively. Since 2003, the returns were 10.0%, 5.5%, and 6.8% for white diamonds, colored diamonds, and other gems, respectively. Both white and colored diamonds outperformed the stock market over our time frame. Nevertheless, gem returns are positively correlated with stock market returns, suggesting the existence of stock market wealth effects.
AB - This paper 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. Between 1999 and 2010, the annualized real USD returns for white and colored diamonds equaled 6.4% and 2.9%, respectively. Since 2003, the returns were 10.0%, 5.5%, and 6.8% for white diamonds, colored diamonds, and other gems, respectively. Both white and colored diamonds outperformed the stock market over our time frame. Nevertheless, gem returns are positively correlated with stock market returns, suggesting the existence of stock market wealth effects.
KW - Auctions
KW - Diamonds
KW - Gems
KW - Hedonic regressions
KW - Alternative investments
M3 - Discussion paper
VL - 2011-028
T3 - TILEC Discussion Paper
BT - Hard Assets
PB - TILEC
CY - Tilburg
ER -