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Do Diamond Stocks Shine Brighter than Diamonds?

Author

Listed:
  • Vera Jotanovic

    (Louvain Finance and CORE, Center for Research Operations and Econometrics, 1348 Louvain-la-Neuve, Belgium)

  • Rita Laura D’Ecclesia

    (Department of Statistical Sciences, Sapienza University of Rome, 00185 Rome, Italy)

Abstract

This paper addresses two practical investment questions: Is investing in the diamond equity market a more feasible and liquid alternative to investing in diamonds? Additionally, is diamond equity affected by polished diamond prices? We assemble an original database of diamond mining stock prices traded on main stock exchanges in order to assess their relationship with diamond prices. Our results show that the market of diamond-mining stocks does not represent a valid investment alternative to the diamond commodity. Diamond equity returns are not driven by diamond price dynamics but rather by local market stock indices.

Suggested Citation

  • Vera Jotanovic & Rita Laura D’Ecclesia, 2019. "Do Diamond Stocks Shine Brighter than Diamonds?," JRFM, MDPI, vol. 12(2), pages 1-19, May.
    • Handle: RePEc:gam:jjrfmx:v:12:y:2019:i:2:p:79-:d:227995
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    References listed on IDEAS

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    Cited by:

    1. Potrykus, Marcin, 2022. "Diamond investments – Is the market free from multiple price bubbles?," International Review of Financial Analysis, Elsevier, vol. 83(C).
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    3. Christian M. Hafner, 2020. "Alternative Assets and Cryptocurrencies," JRFM, MDPI, vol. 13(1), pages 1-3, January.

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