Your Questions About Is It Good To Invest In Diamonds

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James asks…

What are your experience with Lab created diamonds?

I’m considering purchasing this but was wondering if anyone had any good or bad experiences with this or should I just not purchase this type of diamond and go for the natural diamonds. Thanks!

Justin answers:

Funny thing about a lab-created diamond… Barring any engraved label, a jeweller will need some interesting hardware to tell it from a high-quality natural diamond. Basically, the impurities will be too low. Naturally, the good folks at DeBeers have developed tests for the flourescing of these impurities under certain spectra so that people can tell whether their diamond is “real”, and has invested a roughly equal amount in stigmatizing lab diamonds.

Chris asks…

What are some good companies to invest in?

I have a project due in Economics on Wednesday. I have to pick three companies to buy stocks from, and I have no idea where to start.

So far, I’ve considered Apple and Wal Mart, but I have a bad feeling about Wal Mart. And pretty soon, people aren’t going to have any money to waste on iPods and computers. So, eh.

Any suggestions?

The “money” we make during this project is going to determine our final grade. Obviously I want to pick something good to invest in. >_>

Justin answers:

Do they have to be American or does it not matter?

If Canadian companies are ok:

Potash Corp. Of Sask. ( POT.TO) – 52 week high: $246 – Current Price: $77.

Potash is a key ingredient in fertilizer, glass and soap. The reason Potash is a good investment right now is mainly for it’s fertilizer usage. With the middle class demographic in China and India growing rapidly, there is more demand for better quality diet, which means they need more fertilizer to grow better quality foods. POT.TO has skyrocketed in the last year or so, but is suffering due to the economic slow down. Saskatchewan (where Potash Corp. Is based) is in the middle of an economic boom and is supposed to be the province that leads Canada through the upcoming ressession and beyond due it it’s abundance of natural resources like potash, oil, diamond mines, and uranium deposits.

Any of the Canadian banks. Canada’s financial system was recently listed as the stongest financial system in the world. All their stocks are beat up right now becuase many Canadians watch American programing and paint Canadian financials with the same struggling brush as the American financials.

Other good investments right now would be any of the ‘consumer staples’. Companies that will be around for ever and still sell whether it’s a ressession or economic boom. These brands would include Coca-Cola, Johnson & Johnson (personal hygeine products), Proctor & Gamble (personal hygeine products to board games). Another good investment would be General Electric. GE is a manufacturer of various different goods from medical equipment to engines for planes and trains to weapons to clock radios. One of the keys is the weapons and engines. As long as the US is fighting in the war, GE will be making money. When the soldier come home and need medical help, they will use GE medical equipment like MRI machines, etc. Warren Buffet (the worlds richest man and touted as the worlds greatest investor in history) recently bought up a ton of shares in the company. That alone should be a testiment to how great the company is to invest in.

About your picks:

Apple – I’m not so sure about them as well. Money is tightening up so high end items like the iphone will be an optional thing that people will not be buying. Also, with the new Blackberry Storm coming out, that will take a bit out of Apple’s sales as well (no pun intended :D). Depending on how the release of the Blackberry Storm goes, Reasearch in Motion (RIM) would be a better bet. RIM manufactures Blackberry’s. The Storm is supposed to be cheaper than the iPhone, so it shouldn’t price it’s self out of the ressession squeeze.

Wal-mart – I think that one might be ok to look at. I haven’t looked into their financials or anything, but from a logical point of view: When people are broke and money is tight, what do they buy? Cheap, low cost products. What does Wal-Mart sell? Cheap, low cost products. Wal-Mart has stayed pretty flat over the last couple years, but for the most part the economy was booming so people were re-financing their houses and living well. Now that money is tightening up, people will be looking for deals in everything they buy.

Steven asks…

How can i invest in graphene in India?

I have been reading a lot about graphene in the past few days. And i think its gonna be a HUGE in the future. But which company do i invest like in stocks or something (I don’t have much knowledge in finance and commerce), but which company??!!

Justin answers:

It doesn’t work that way. Graphene isn’t a commercial technology yet so nobody is earning any money on graphene. Putting your money into any project this early-stage would be very risky, which is why if some large companies are doing research on graphene it is a small part of their research budget and thus likely to be a small part of their upcoming cash flows.

If there was a small company out there doing research in graphene (there might be), investing in it would be wildly speculative and should be a small part of your portfolio. I agree that graphene is exceedingly cool and in 50 years maybe we will be building graphene cables (Arthur C Clarke wrote a book based on diamond cables years ago) and quantum computer chips, but you need to look for some other way to invest your money unless you are wildly wealthy.

Richard asks…

I was wondering if I should get some little diamond stud earrings?

Ive been debating lately if I should get some diamond stud earrings or not? Some ppl have told me I should get some. I was hoping to get some more opinion on that matter. (girls and guys) I know not everyone looks good with em so let me upload a pic and see what you all think. One side only, both or just plain out non lol?

Justin answers:

No, this recession is prime reason to learn how to save.

Buy something you will use.

Remember, people who show off that their wealth with diamond jewelry and BMW’s are actually the people who are living off paycheck to paycheck. The wealthy people are those who know how to save and live well under their means.

Many billionaires don’t show off their wealth because they are constantly saving it and investing it to become even more wealthy.

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