Germans Purchasing Diamonds As Investments

As the banking crisis continues to plague the European continent and its strongest national economy, German citizens are turning to polished diamonds as a way to secure their financial wealth, Diamond Intelligence reports cited by Israelidiamond.co.il. Diamond rings, gold watches and other items of jewelry are being consumed in significant quantities by German consumers, due to the country's low interest rates, blocking that traditional avenue for maintaining and increasing capital wealth.
German association of jewelers and watch retailers BVJ estimates that they will earn $6.6 billion in sales in the 2012 calendar year, matching last year's numbers, which were a record high. BVJ managing director Joachim Duenkelmann said he believes that this year's figures may even exceed last year's.
Interest rates in the euro zone stand at less than a single percentage point, only 0.75%. Some analysts believe that the European Central Bank will further reduce the interest rate in the coming months to stimulate the economy of the region, according to Diamond Intelligence.