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.
Do Diamond Stocks Shine Brighter than Diamonds? / D'Ecclesia, RITA LAURA; Jotanovic, Vera. - In: JOURNAL OF RISK AND FINANCIAL MANAGEMENT. - ISSN 1911-8074. - 12:2(2019), pp. 1-19.
Do Diamond Stocks Shine Brighter than Diamonds?
D'Ecclesia Rita LauraSecondo
;Jotanovic Vera
Primo
2019
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.| File | Dimensione | Formato | |
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Jotanovic_Diamond-stocks_2019.pdf
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