Financial Planning

Some jewelry retailers and diamond mining companies offer publicly traded stocks on the market. The major names are recognizable to many and making an investment in these companies can be wise when the relevant commodity prices are high. There is not a direct correlation between the prices of precious metals or jewels and the share value of jewelry retailers. However, it is reasonable to assume that a well-managed jewelry retailer will benefit from soaring gold and silver prices.

Harry Winston Diamond Corp is based in Toronto, Canada and was founded in 1980. This company mines and markets diamonds and retails watches and fine jewelry. The Diavik Diamond Mine in the Canadian Northwest Territories is half-owned by Harry Winston. The stock has a price earnings ratio of 17 and a yield of 0.7%.

Signet Group operates several jewelry retail giants within the United States and United Kingdom. The UK holdings include Ernest Jones, The Diamond and Watch Specialist, Leslie Davis, and H. Samuel The Jeweler. Its U.S.-based holdings include Jared The Galleria of Jewelry and Kay Jewelers, amongst others. The stock yield is 4.8 percent and the price earnings ratio is 12.

The ever-popular Tiffany & Co. was founded in 1837 and currently has 60 stores based in the U.S. and 100 international stores. The development of the metric carat as the gem weight standard is attributed to a Tiffany gemologist. This company, one of the top jewelry organizations in the world, has a stock with a price earnings ratio of 19 and a yield of 1.4 percent.

These are just three stocks in the jewelry industry from which an investor can select. There are many other retailers, such as Blue Nile and Zale Corp. Investors can also put their money into mining companies such as Mountain Province Diamonds, Anglo American PCL, Rio Tinto, and BHP Billiton Ltd. These companies mine products such as diamond, gold, silver, copper, and platinum.