Diamonds Aren't an Investor's Best Friend

A drooping dollar and inflation worries have bolstered the price of gold and other commodities that are generally considered robust investments in rocky times.

Do diamonds share the same luster?

In most cases, no. Some investors buy diamonds in the form of mining company stocks, many of which are not listed on an organized exchange or on Nasdaq; a larger diamond-mining company, Mountain Province Diamonds (MDM) is listed -- and is up 51% so far this year. The bump appears to be based more on speculation, however, because the company's mine isn't yet producing. You can also get exposure to the diamond market through jewelry company stocks such as Tiffany & Co. (TIF) or Zale (ZLC). ...