There are dealers willing to buy and sell diamonds for cash in every major city. Unlike almost any other investment you can take pleasure from wearing them. Finally, if you know what you are doing, it is possible to make well above average. The vast majority of diamonds - some 80% - are used for industrial purposes and, here again, prices have been rising as demand outstrips supply.

Also they are relatively liquid. Over the long term they have always more than held their value; they are easy to transport and - for those living in politically unstable regions of the world - to hide; plus in countries with heavy death duties, they can be passed down from generation to generation without attracting the attention of the tax man.

De Beers, which controls 60% of the world's diamond production, has increased it's prices five times in the last 24 months, but worldwide demand is still rising at 8% a year. Nor is this growth limited to diamonds for jewellery. The lure of diamonds as an alternative investment is easy to understand. In China alone diamond sales are expanding at 25% a year.

How to Make Money From Diamonds and Other Precious Stones Diamonds are not only a girl's best friend, they can also produce a rock solid return.