Precious Metals And Diamond Case Study

3. Generality on precious metals and diamond:
3.1. Precious metals performance : In recent years, precious metals have played an important role as an investment asset. Many investors are interested in precious metals as a financial investment due to a several criteria which present a security for therm. Among all precious metals, gold has been attracted most of the media and press. This popular metals has long been considered as a symbol of wealth and prosperity furthermore it has characterized by the similar properties as money due to its historical uses as a currency. It historically has moved independently with other assets in this order it could be used to diversify portfolios and for risk management (Baur and lucey (2010) and Baur
These metals show the ability to protect global purchasing power, reduce portfolio volatility and minimize losses in addition to the potential to hedge and safe haven when gold deemed insufficient (Lucey and Li (2013)). According to Ibbotson and Associates (2015) , a portfolio diversification with gold, silver and platinum have a negative average correlation to other asset classes. Moreover, Ibbotson also showed that portfolios could reduce risks and improve returns with a 7-15 % allocation to gold, silver and
This rare metals in name of “rhodium” is discovered a long with palladium in 1803, by British chemist and physiest William Wollaston. Rhodium belongs to the platinum group metals (PGM’s) where we find: Platinum, Palladium, Iridium, Osmium and Ruthenium. All these metals share same chemical and physical properties. Few years ago, rhodium market was a very small and its prices was quite illiquid. Hence, it couldn’t be acquired using futures and other derivatives. As rhodium is very harsh and is difficult to work with. Cohen Mint introduced with a special process to produce rhodium bullion rounds and bars and to monopolize rhodium bullion market. In 2011, an exchange traded fund “ETF” was established by Beutshe Bank and physical rhodium. Newly, due to their lower premiums, smoothly wrapped and the accessibility to the fractional rhodium bars Baird Mint (out of the United King Dom) become the most popular rhodium bar on the market and the front runner when it comes to rhodium investing. Since the economic crisis, investors has interested in rhodium investment as an alternative to protect and secure their wealth during