This is the first book which deals with the economics of diamonds, specifically with the determinants of diamond prices. The period of analysis, 1978-1983, was chosen in order to shed light on the dramatic drop in diamond prices. The dominant variables causing this drop were the varying price of gold and fluctuating interest rates. Khoury helps the investor in making long-range decisions about investing in diamonds and deciding on the form the investment should take. He warns of the importance to understand the sensitivities of the market and the factors which must be taken into consideration before commitments to an investment in diamonds are made.
The book includes: a quick review of the characteristics of diamonds, the financial performance of DeBeers in a declining market, the economic structure of the diamond industry, the method for exercising economic control over the diamond market, the economic variables influencing diamond prices, and the modeling of diamond prices and the testing of the model using advanced statistical methods.
About the Author
SARKIS J. KHOURY is Professor of Finance at the University of California, Riverside. He has conducted several seminars on banking, financial planning, and international finance. Khoury has written thirteen books dealing with international finance, speculative markets, international banking, investments, and mathematics of finance and numerous articles, some of which were published in leading journals in the United States.
Table of Contents
DiamondsA Historical and Technical Perspective
DeBeers: The Brilliant Octopus
Diamonds as an Investment
The Changing Economic and Market Environment: Impact on Diamond Prices
The Determinants of Diamond Prices
Investment Recommendations and Conclusions
Glossary of Terms Commonly Used in the Diamond Industry