Business: Diamonds Sparkle Plenty

For money, not love, cool investors put ice on fire

Poor Elizabeth Taylor. In June, when she finally sold that 69.42-carat, $1.1 million diamond that Richard Burton gave her ten years ago, she did not get her asking price of $4 million.

The pear-shaped trinket fetched only $2.5 million. Still, that was a nice little appreciation of 127%. On a smaller scale, a one-carat flawless gem that sold for $1,400 in 1968 and $6,500 in 1976 now goes for $22,000 or more. These perfect stones are almost unavailable today, but even lesser quality large diamonds are rising at 25% to 40% a year.

Diamonds...

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