Investors shift to diamonds after gold tumble
Investors are buying into more diamond miners following the tough run on gold, reports CNBC news.
JPMorgan said exciting things are happening in the sector.
The firm said it reduced its gold equity holdings earlier in the year, before the gold selling panic in April, and put money into diamond mining stocks — Lucara Diamond Corp (TSE: LUC), Mountain Province (TSE: MPV; NYSEMKT: MDM) and Dominion Diamond Corp. (TSE, NYSE: DDC).
All three of these gemstone miners have seen increases in their stock price this year, 27%, 33% and 8% respectively.
JPMorgan said prices for the precious stones have held up well due to demand in the US and China.
Chicagoan financial firm GemShares has proposed the first diamond ETF, which will start next year once approval from the US Securities Comission is granted, in response to investor interest.
Image: Mountain Province Youtube screengrab