Signet Jewelers (NYSE:SIG)
Signet Jewelers Ltd is a retailer of diamond jewelry. Its merchandise mix includes bridal, fashion, watches and others. The bridal category includes engagement, wedding and anniversary purchases. Its segments are the North America segment, the International segment, and the Other segment. The North America segment contributes to the majority of the revenue.
Gem Diamonds (OTCPK:GMDMF)
Gem Diamonds Ltd is a United Kingdom-based company engaged in the exploration and development of diamond mines. The company’s geographical segments include Lesotho (diamond mining activities); Belgium (sales, marketing, and manufacturing of diamonds); and BVI, RSA, the UK, and Cyprus (technical and administrative services). It generates maximum revenue from the Belgium region. Its projects include Letseng Diamond mine and Ghaghoo Diamond mine.
Mountain Province Diamond (OTCPK:MPVDF)
Mountain Province Diamond is a Canadian diamond company. The company brings together exploration, mining and marketing of natural rough diamonds from the Northwest territories of Canada.
The diamond stock has market cap of $56 million. It trades more than 16,000 shares per day. Mountain Province Diamond generated revenue of $276 million in 2019.
Rio Tinto (OTCPK:RTNTF)
Rio Tinto searches for and extracts a variety of minerals worldwide, with the heaviest concentrations in North America and Australia. Iron ore is the dominant commodity, with significantly lesser contributions from aluminium, copper, diamonds, gold, and industrial minerals. The 1995 merger of RTZ and CRA, via a dual-listed structure, created the present-day company. The two operate as a single business entity. Shareholders in each company have equivalent economic and voting rights.
Anglo American (OTCQX:NGLOY)
Anglo American’s mining portfolio spans many commodities and continents. Like fellow large diversified miners, Anglo has significant exposure to copper, coal, and iron ore, but it is unique in its significant platinum output. The company accounts for about one third of the world’s platinum supply and just over 20% of palladium supply. Anglo also owns 85% of De Beers, in most years the world’s largest supplier and marketer of rough gem diamonds.
Diamond stock performance hasn't been the greatest over the past few years for investors. However, there’s an expectation that these stocks will experience a rise in the future. Want in the game as diamonds start to shine? Start with our list of the best diamond stocks.
Quick Look at the Best Diamond Stocks:
Overview: Diamond Stocks
The United States is 1 of the largest global consumers of diamonds. It spent $20.2 billion on diamonds in 2019 or 19.2% of the global market share. About 46% of rough diamonds are for industrial purposes, while 19% are used as gem-quality polished mineral stones.
At the close of 2019, diamond stock prices were at the bottom with some diamond stocks falling into stocks under $5.
In 2020, things looked worse for the diamond industry. The pandemic affected the Chinese diamond market, which makes up 15% of global demand. Aftershocks of the pandemic could continue to negatively affect the market demand for diamonds.
Diamond stocks are expected to have a bullish outlook going forward. Get in at the ground level with our recommended online brokers and top picks for diamond stock.
Best Online Brokers for Diamond Stock
Take a look at our list of the best online brokers to help you trade these stocks.
Features to Look for in Diamond Stock
Diamond stock has been neglected due to lack of price transparency. But it is again considered a viable investment with risk.
Much time passes between the exploration stage and the commercial production phase. During this lag time diamond stock shares can fluctuate. But companies that find mineable diamonds in quantities can make huge profits.
It's important to learn to cut your risk when investing in diamond stocks. Find these stocks with high-quality reserves, well-established mines and potential for profit.
Consider these factors as you look for the best stocks:
- Earnings per share (EPS): EPS is calculated by dividing a company's profit by the outstanding shares of the company's common stock. The EPS shows the profitability of a company. A higher EPS means higher profitability. Companies report EPS after adjusting it for extraordinary terms.
- Time series length shows how many years a company has been listed in the exchange. More years show more credibility.
- Liquidity: This is the ability to buy or sell an asset without affecting its stock price. Look at the average trade volume of the equity. The average trade volume of the equity should be at least 100,000.
Don’t look at the market price of diamonds when looking at the best diamond stocks. There are stocks that are premarket movers. Benzinga can also recommend some of the best stocks under $10 and stocks under $20.
Plug into Diamond Stocks
It's obvious Rio Tinto stands out as the best diamond stock. But the trend of all these stocks affected by the global currencies are sensitive to the U.S. dollar. A fall in the value of the dollar creates a better financial environment for diamond mining businesses. Should there be an uptrend in the value of the U.S. dollar, these stocks will likely be affected.
Frequently Asked Questions
What is diamond stock?
Diamond stock is shares in a company related to the diamond industry.
Are diamond stocks a good investment?
Diamond stocks are considered a good long-term investment.
What are the best diamond stocks?
You can find a list of the best diamond stocks above.
Continue reading: BEST PLATINUM STOCKS