A Diamond Is Forever, Depending on the ROI

Jewelers love to tell shoppers that a diamond ring symbolizes love and commitment. But according to new research by Bain, women in Asia are much more likely than their American counterparts to prize its investment potential, according to an article published by The Wall Street Journal.
In a survey of 5,200 women that the consulting firm conducted via online and jewelry-store questionnaires, half of Indian women and 45% of Chinese women said they consider diamonds a way to make money. In comparison, only 15% of women in the U.S. had similar sentiments.
“Chinese consumers look at diamonds as a way of value preservation,” said Weiwen Han, a consultant who contributed to the study.
China is the world’s second-largest diamond market, spending $9.2 billion last year on the precious stones. The U.S. is by far the biggest market, with 2011 spending of $26.9 million, and India ranks third, with $8.5 billion spent.
That’s not to say that women in China are busy trading in their jewelry: When asked to name the first word that came to mind when talking about diamonds, they most often said “eternity,” while Americans and Indians were more likely to say “expensive.” “In China, there’s still a high emotional association with diamonds,” Mr. Han said.
Diamonds are a relatively new status symbol in China, a country that traditionally has favored jade and gold. But they are rapidly gaining in popularity. According to the survey, 60% of Chinese women received a diamond engagement ring sometime in their lives, though they’re still lagging behind the bejeweled America, where 85% of respondents said they had received one.