The post Best Diamond Stocks Right Now by Edward Odongo appeared first on Benzinga. Visit Benzinga to get more great content like this.
Diamond stock performance hasn’t been the greatest over the past few years. However, there’s an expectation that diamond 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.
Contents
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 diamond 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 diamond stocks with high-quality reserves, well-established mines and potential for profit.
Consider these factors as you look for the best diamond stocks:
- Earnings per share (EPS): EPS is calculated by dividing a company’s profit with 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 diamond stocks which 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 stocks. But the trend of all diamond 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, diamond stocks will likely be affected.
Continue reading: BEST PLATINUM STOCKS
The post Best Diamond Stocks Right Now by Edward Odongo appeared first on Benzinga. Visit Benzinga to get more great content like this.
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