The United States stands among the leading consumers of diamonds globally, having spent $20.2 billion in 2019, representing 19.2% of the global diamond market. Rough diamonds find application in approximately 46% of industrial uses, while gem-quality polished stones are utilized in 19% of cases. However, by the end of 2019, diamond stocks reached their lowest point, with some values plunging as low as $5.
The diamond sector faced further challenges in 2020, particularly due to the impact of the COVID-19 pandemic on the Chinese diamond market, which accounts for 15% of global demand. The ongoing repercussions of the pandemic are likely to continue affecting diamond market demand.
Despite these difficulties, a bullish outlook is anticipated for diamond stocks in the future. It is recommended to capitalize on the best recommendations for diamond stocks and encourage online brokers to enter the market early on.
The diamond is the one stone that Americans can’t get enough of. In fact, Americans spent $20.2 billion on diamonds last year alone. The fact that this represents barely 19.2% of the worldwide market share is even more astounding.
But these kinds of gems can be used for more than just stunning jewellery.
A whopping 46% of diamonds are employed in industrial processes like grinding, drilling, and cutting. The top diamond stocks are active in multiple sectors. Only around 19% of the world’s diamonds are the polished, idealized minerals we see for engagement rings.
The year 2020 was a slow one for the diamond industry.
It might have happened as a result of the recession’s decreased demand for expensive goods.
The epidemic also impacted China’s diamond manufacturing (accounting for 15 percent of global diamond demand).
Despite the challenging year the diamond industry has had, there is a lot of hope for a robust future recovery.
Our top selections for diamond stocks to look out for in 2022 will help you profit from this potential recovery.
What Are Diamond Stocks?
Diamonds evoke a sense of luxury and are renowned for their enduring strength, making them a symbol of opulence. However, when it comes to diamond stocks, which encompass businesses involved in various aspects of the diamond industry, a closer examination is warranted. Despite the timeless allure of diamonds, investors should consider the stocks of companies engaged in the creation and trade of these exquisite gems, given that the global market for diamond jewelry boasts an annual worth of approximately $100 billion.
The diamond industry, deeply entrenched and steeped in history, has long been established. Typically, for investors seeking substantial growth, this sector of the mining industry may not be the most enticing choice, as other stocks tend to offer more favorable prospects. It is important to exercise caution, as certain diamond producers, such as Petra Diamonds and Gem Diamonds Limited (OTC:GMDMF) (LON: PDL), fall into the penny stock category. When contemplating investments in stocks that appear to trade at discounted prices, it is prudent to approach with due diligence.
Rio Tinto Limited (NYSE: RIO)
The second-largest mining and metals corporation in the world is Rio Tinto Group.
This Anglo-Australian multinational corporation, which was established in 1973, has its headquarters in London.
Gems, iron ore, copper, uranium, and gold are among Rio Tinto’s key offerings.
The corporation has grown significantly through mergers and acquisitions throughout the years.
The corporation primarily concentrates on mineral extraction, although it also engages in refinement.
Rio Tinto also trades its stock on the New York Stock Exchange (NYSE), Australian Securities Exchange, and London Stock Exchange.
According to its most recent financial report, Rio Tinto generated $10.2 billion in free cash flow, a significant rise of 262 percent over the prior year.
Additionally, its reported operation earnings are $12.2 billion, up more than 150% from the previous year.
However, last week saw a 2.41 percent decline in its stock.
The equity unit is still up 10% for the year despite suffering severe losses.
It can be in part because of the company’s overall relevance, given breakthroughs and a diverse portfolio.
In actuality, the company’s iron ore mining generates 75% of its EBITDA earnings.
The Rincon lithium mine in Argentina will reportedly cost $825 million as part of the company’s attempt to change that.
The demand for lithium is unavoidable due to the rising popularity of electric vehicles, and RIO stock is a fascinating investment simply based on this.
LVMH Moet Hennessy Louis Vuitton (OTC: LVMUY)
The French luxury goods firm LVMH Moet Hennessy Louis Vuitton SE (OTCMKTS: LVMUY) was founded in 1854.
It was created in 1987 as a result of the union of champagne manufacturer Moet Hennessy and fashion designer Louis Vuitton.
It is also highly involved in the production of diamonds and jewelry.
Among the well-known brands in the business’ portfolio are TAG Heuer, Loewe, Kenzo, Christian Dior, Givenchy, Celine, Louis Vuitton, and Christian Dior.
The corporation bought Tiffany last year to support that area of its business.
Although LVMUY is not a pure-play diamond stock, it has significant investments in the sector and stands to gain if the demand for diamonds increases.
LVMUY is a fantastic investment for diamond stocks due to its extensive portfolio and strong position in the luxury goods sector.
In addition, the business recorded a 156 percent increase in net profit for the final quarter of 2021.
Signet Jewelers Ltd. (NYSE: SIG)
Signet is the largest diamond jewellery store in the world and has its headquarters in Ohio.
Since its founding in 1949, Signet has expanded through a variety of mergers and acquisitions.
The corporation is currently valued at $4.46 billion.
Signet Jewelers owns and manages a number of well-known businesses, including Jared, Zales, Kay Jewelers, and others.
In the United Kingdom, Canada, United States, the Republic of Ireland, and the Channel Islands, the corporation runs close to 3,000 shop locations.
The company’s portfolio is highly varied and includes some of the most recognizable brands on the market.
The value of Signet has significantly declined since 2015 when it reached its peak price.
Despite this, the stock of Signet started on an upward trend, which suggests that the company may be about to undergo a significant turnaround.
The stock has increased by 99.5 percent in the past year and 29.5 percent as a result of the past nine months of the company’s growing brick and store and online sales as well as its varied business strategies.
In the long run, the stock may be well-positioned for significant upside due to the company’s sound financial position and high-profit margins.
Anglo American plc (OTCMKTS: NGLOY)
Gems, as well as a variety of base and precious metals like platinum, copper, nickel, and others, are among the minerals that Anglo American mines and processes.
Anglo American, based in England, is by far the biggest producer of platinum in the world, producing 40% of the metal.
Anglo American has regional activities across six continents.
It ranks as the 274th-largest corporation worldwide.
In the three months preceding December, the business recorded a 15 percent year-over-year increase in its rough diamond production, mostly due to higher output from Botswana and Namibia.
Following the publication of this research, on January 19, 2018, the share price of Anglo touched a record high of $24.14 before experiencing a slight decline and subsequent price correction.
The company’s diamonds make up for the dismal performance of its copper mining business, keeping them above the profit line.
Although only time will tell, many investors anticipate that this momentum will continue in the upcoming months.
Gem Diamonds Limited (OTCMKTS: GMDMF)
The main operations of Gem Diamonds Limited, a diamond mining firm, are in Lesotho and Botswana.
Letseng and Ghaghoo, the company’s two mines that produce diamonds, and Kao, which is still under construction, are its other two mines.
Additionally, Gem has a sizable pipeline of greenfield projects.
According to Gem Diamond’s most recent financial filings, net revenue increased from $69 million last year to $104.5 million this year.
EBITDA increased to $34.7 million for the fiscal year, up from $11.3 million the previous year.
Despite the difficulties COVID-19 presented, the business was nonetheless able to produce a record 58,831 carats of diamonds in its first six months of 2017.
With a robust production pipeline and recent significant growth, Gem Diamonds is well-positioned to maintain this growth.
GMDMF may be a possible investment for investors interested in diamond penny stocks.
But keep in mind that they frequently have extreme volatility.
Mountain Province Diamond (OTC: MPVDF)
Mountain Province, which has its headquarters in Canada, is another one of the list’s most erratic diamond mining firms.
The business and De Beers are key collaborators on the Gahcho Kue Diamond Mine Project.
The world’s wealthiest and newest diamond mine, Gahcho Kue, is thought to have an 80 million carat resource.
From 2009 to 2017, Mountain Province’s market performance was at its peak.
Following then, the Covid-19 epidemic worsened the stock price decline.
According to the data, Mountain Province experienced a pandemic low point and is now showing signs of recovery.
At the company’s first auction of the year, 181,851 carats were actually sold for a total of $25.0 million, averaging out to US$137 per carat.
It is a fantastic beginning for the Gahcho Kue and gives the business a firm foundation as it moves forward this year.
The company modified its 2022 guidance for this reason.
Despite being impacted by the COVID issue, its diamond mines continue to produce good cash flow, which has been accompanied recently by a robust demand for diamonds in the market.
Mountain Province may be a significant player as the diamond industry is predicted to recover remarkably. Making an immediate investment in this company can be a smart move.
Alerus Financial (ALRS)
Businesses and consumers can access a range of financial services from Alerus Financial Corporation and its affiliate, Alerus Financial, National Association. Banking, Retirement and Benefit Services, Wealth Management, and Mortgage are the company’s four business segments. It offers a selection of deposit products, such as time and savings deposits, certificates of deposit, checking accounts, demand deposits, interest-bearing transaction accounts, money market accounts, and interest-bearing transaction accounts, as well as treasury management products, such as electronic receivables management, remote deposit capture, cash vault services, merchant services, and other cash management services.
After closing the previous day at $22.62, Alerus Financial stock opened the day at $22.64 per share. The most recent cost was $22.60. (25-minute delay). With trailing 12-month sales of about USD226.2 million and 779 employees, Alerus Financial is a NASDAQ-listed company.
Zhengzhou Sino Crystal Diamond (300064)
Synthetic diamonds and related goods are researched, developed, produced, and sold in China by Zhengzhou Sino-Crystal Diamond Co., Ltd.
After closing the previous day at $1.27, Zhengzhou Sino Crystal Diamond stock opened the day at $1.50. 1.50 was the most recent price (25-minute delay). With 1,082 employees and a trailing 12-month revenue of about CNY£877.7 million, Zhengzhou Sino Crystal Diamond is a publicly traded company on the SHE. Every pricing is displayed in Renminbi.
SF Diamond (300179)
Polycrystalline diamond (PCD) and composite super hard materials are produced and sold in China by SF Diamond Co., Ltd.
After closing the previous day at 17.93, the SF Diamond stock opened the new one at 17.93. The most recent cost was 17.83. (25-minute delay). With a trailing 12-month revenue of around CNY451.6 million and 554 employees, SF Diamond is a publicly traded company on the SHE. Every pricing is displayed in Renminbi.
Market capitalization: $7,553,341,952
P/E ratio: 67.3043
PEG ratio: 0
Star Diamond
The Star-Orion South diamond project is part of the Fort à la Corne mineral dispositions, which are entirely held by Star Diamond (TSX: DIAM). The mineral dispositions at Fort à la Corne are situated in the same-named provincial forest in Central Saskatchewan, Canada.
The miner claims that since the early discovery of these kimberlites in the late 1980s, the enormous extent and immense kimberlite volume contained in the Fort à la Corne field have been recognized.
The Star and Orion South kimberlites could yield 66 million carats in a surface mine during 38-year project life, according to a preliminary economic evaluation from 2018.
The Popularity of the Diamonds ETF
Diamonds are a popular and generally well-regarded fund. Owning shares of Diamonds allows investors to attain the diversity of the DJIA with relatively low transaction fees. The fund is highly regarded for its relatively low gross expense ratio of 0.16%. Diamonds, like other ETFs, may offer some investors tax advantages over owning mutual funds. The fund’s large size provides ample share liquidity, and investors can buy or sell shares any time the exchange is open. The ETF’s high market capitalization and liquidity have spawned a variety of options chains from which traders can choose. The NYSE allows investors to trade Diamond shares using margin, as well as to short-sell Diamond shares. Titan Investments is the best place where you can invest money for Diamond Stocks profit returns.