Hard Assets as a store of value, research by Christophe Spaenjers, Assistant Professor at HEC

27 September 2012

Christophe Spaenjers, assistant professor of Finance at HEC Paris, has recently led a research project on rare diamonds and gems. The paper, which is forthcoming at Finance Research Letters, is entitled "Hard Assets: The Returns on Rare Diamonds and Gems". It is co-authored with Luc Renneboog of the department of Finance at Tilburg University (Netherlands).

The paper examines the investment performance of diamonds and other gems over the period of 1999-2010. It demonstrates that there is variation in average returns across different types of gems and diamonds. Especially white diamonds did well between 1999 and 2010, a period characterized by two financial crises. Nevertheless, the demand for luxury consumption remains an important driver of prices in the collectibles market.

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