Biz News Flash
Diamonds becoming an investor's best friend
By Shen Jingting (China Daily)
Updated: 2010-07-12 10:21
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A customer chooses diamonds at a jewelery center in Beijing. [Bao Fan / for China Daily] |
He said it might be because of the recent sluggish performance of the stock market and property market, causing investors to divert their money into other profitable channels.
Qiao Haitao, marketing director with popdiamond.com, one of the largest diamond transaction websites in China, said a Beijing woman bought a four-carat diamond for 1.28 million yuan in April.
The sale was the largest online transaction nationwide at the time.
The woman later participated in a CCTV interview and said the deal was a good one for her.
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The Beijinger has become known among netizens as "zuiniu wanggou nu" (or most powerful online buying woman).
In total, around $3 billion-worth of diamonds were sold in China last year, according to statistics from the Gems & Jewelry Trade Association of China.
The volume of diamonds bought surpassed that of Japan and took China to second place in the ranking of diamond importers worldwide, behind the United States.
Sales of diamonds suitable for investment - usually those with a weight of more than one carat - are likely to increase by 40 percent this year, the association said. It is possible that more than 100,000 diamonds heavier than one carat will be sold in China within the year, the association estimated.
There are several reasons why Chinese people are increasingly favoring investing in diamonds.
Firstly, the supply of diamonds is limited and diamond prices have rebounded since the global financial crisis started in 2008.