Global Diamond Exchange, Inc. (GBDX)

[novus ordo seclorum]

Diamonds are going to heat up the market along side resource companies, ie gold, oil, minerals, etc.


"Diamonds are "definitely a commodity. You buy and sell them for cash," he said. "They're a natural resource with limited supply; they're well defined; they're certified; they're analyzed, graded, tradable around the world."

So what really is a diamond and a commodity and can they be considered one in the same?

A diamond is a "nearly pure, brilliant, crystalline carbon -- the hardest mineral known," while a commodity is "any useful thing; anything bought and sold," according to the Webster's New World dictionary.

It sounds like a diamond is all these things, but it's nothing like other commodities.
Diamonds are seen as symbols of enduring love, so they rarely find their way onto the resale market, according to HardRockAnalyst.com.
"This means that unlike any other commodity, the market does not have to absorb both new and past production -- once sold, diamonds tend to stay off market," said David Coffin, co-editor of the site, which offers publications focused on resource stocks.

"The entire marketing push for diamond has always been predicated on making it an emotional gift people will not want to part with," said Eric Coffin, David's brother, who's also co-editor of the Web site. "For that reason it was always pushed as jewelry, not as raw stones."