Will President Trump Affect the Diamond Industry?
November 11th, 2016 by Noam Flint
In a battle that will be remembered for decades to come, Donald Trump beat Hillary Clinton in the race for President at 279 votes to Hillary’s 228.
A Republican presidential elect has many implications for the United States, but one that was also a successful and controversial businessman adds even more interesting layers to the mix. The question that most voters are asking themselves is how his presidency will affect their bottom lines? Will he improve the economy? Will he increase our ability to spend money on wants rather than just needs? I have my eye on some things that I want to buy!
Trump the Brand
Trump has run many different kinds of businesses, with varying degrees of success. Most importantly, he has built an empire and a personal brand of enormous proportions. It is very likely that because of Trump’s strong business skills and experience, he will be able to look carefully at the US economy and eliminate many of the current problems. If that does successfully happen, the natural result will be an increased job market, a nationwide rise in wages, a stronger stock market, stronger interest rates, and much more.
Is it time for Luxury?
For people who want to buy luxury items like diamonds, this is the opportunity that they have been anticipating. Look no further for proof than to both China and India and their upper classes that have emerged as a result of incredible economic growth.
Now that vast numbers of Chinese and Indian citizens have more disposable income, they are finally able to buy the luxury items that have long been out of their reach. Great numbers of fancy color diamond sales have resulted in these areas, as people are embracing the dual aspect of buying fine items with everlasting financial value.
The same can be expected of an increasingly wealthy United States. As more disposable income will be available to the masses, people will naturally turn to spend their money on items that they desire but also on items that are objectively smart choices. The days with frivolously spent money are long gone in the wake of a difficult financial decade and the subsequent nationwide reawakening in personal financial matters.
Will Trump Affect Diamond Prices?
Assets like diamonds but specifically fancy color diamonds serve multiple purposes but most of all, they are an exciting purchase that promises to increase in value over time with absolutely no devaluation possible.
Similar to countries like China and India, citizens of the US will slowly begin to turn to assets like fancy color diamonds to consume their wealth responsibly. Naturally, diamond prices (and especially fancy color diamonds) will rise in turn seeing as how demand will increase, but that is only to the buyers’ and the trend’s benefit.
Increased purchases of fancy color diamonds, especially in the rarer diamond colors like pink, red, and blue, will further cement the importance of these kinds of investments on the world stage, as well as provide a boost for businesses who specialize in these goods.
The increased purchases will increase demand, and the trends in diamond pricing over the last half- to quarter-of-a-century will continue to flourish for the better, adding value to all incumbent fancy color diamond owners as well as diamond investors.
Will a Trump presidency positively affect the diamond industry? Only time will tell, but if past history can be taken as an indicator of future performance, which is coincidentally the entire premise of investments in any case, there is a good chance that this is exactly what will occur. More disposable income as a result of an improved economy, job market, and salary increases will mean more consuming and investing, which is exactly the recipe that the US needs for a good recovery.
But those are just hypothesis and only time will tell. One thing for certain, whether you wanted Trump or Hillary, we all want better economy!