So, you have US$50 million for some reason in your bank, obviously the the USD is an ever depreciating asset, a unique opportunity comes up: hedge $40 million of it on diamonds, do you do it?
Obviously this is a hypothetical, heard it asked a different way somewhere else, and I thought I would ask you gentleman, and ladies.
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Excuse my ignorance but why is the USD an ever depreciating asset?
To OP: why would anyone put 80% of their net worth in diamonds? I certainly wouldn't.
Couldn't that be said for any currency? Is the assumption here that inflation in the US will always be higher than those of other major currencies?
Because Obama
I thought people would kind of say something like "maybe $XX million" or something along those lines. Mr. Fuld, you're right 80% of their net worth in any asset, much less diamonds, is absolutely absurd. But then having it all in USD isn't such a good idea either.
xiamen92 - I am referring to inflation as Mr. Fuld stated. I also think the Fed. will continue to print and pump more money into the economy, despite their 'intentions' to taper later this month.
why would you put that money into diamonds before putting it into equities...
Diamonds are shinier?
The future of diamonds is too volatile in the long-term. Synthetically-produced diamonds and changes in societal views are both threats to the gem. I’d invest in real estate, either via REITs, or more likely, commercial development itself.
blue-chip wine?
assuming you can somehow restrain yourself from drinking it
Put it all on black.
http://www.indexuniverse.com/sections/features/11241-indexiq-plans-physically-backed-diamond-etf-indexiq-plans-physically-backed-diamond-etf-.html
My grandfather emigrated from Germany to the US in the 1930s and he had many Jewish friends. When shit hit the fan, the only thing many of them could escape with was what they could carry. I know a few guys from that background who today keep a substantial portion (>10%) of their wealth in diamonds, "because you just never know."
Some feel that Diamonds are crap. http://www.huffingtonpost.com/rohin-dhar/diamonds-are-bullshit_b_3708562.html
I heard the following on the Sopranos which says, "buy land because gods not making anymore of it."
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