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Diamonds are the epitome of luxury for many people. They are also one of the most durable materials on earth. But if "diamonds are eternal", what about diamond stocks-those companies involved in everything from gem mining to sales? The global diamond jewelry market is worth nearly 100 billion U.S. dollars each year, and the stocks related to the production of these luxury goods are worthy of investors' attention.  

Diamonds have been around for a long time, and the industry has matured. Investors looking for high growth may want to abandon this part of the mining industry and switch to other stocks. In addition, there are many diamond producers that are low-priced stocks, such as Gem Diamonds Limited (OTC: GMDMF) and Petra Diamonds (London: PDL). Be cautious with stocks that seem to be trading at low prices.

However, for investors seeking to provide large and established companies with slow but steady growth, some names dominate the field and deserve careful study.

LVMH Moet Hennessy Louis Vuitton (OTC code: LVMUY)

The world's largest fashion company group.

Top producer of industrial metals and diamonds.

Owner of the top diamond company De Beers.

A large number of diamond jewelry retailers.

Data source: YCharts. Market value as of November 22, 2021.

LVMH Moet Hennessy Louis Vuitton is the world's largest luxury goods group, with some top brands that reference the essence of high fashion. It is also highly involved in the production and retail of diamonds and jewelry. The brands in the company's product portfolio include iconic names such as Bulgari, Chaumet and TAG Heuer.  

In order to strengthen its influence in the field of top jewelry and gemstones, LVMH completed the acquisition of Tiffany in early 2021. Soon thereafter, LVMH announced the launch of a joint gem and raw material sustainability plan to help promote positive changes in the industry.

LVMH is not a pure diamond game. In addition to brands that specialize in jewelry, LVMH stock also provides investors with investment opportunities in high-end clothing and accessories, perfumes and cosmetics, as well as champagne, wine and spirits. However, if you want to own "fashion house" stocks including some of the world's top diamond companies, then LVMH Moet Hennessy Louis Vuitton may be your starting point.

Rio Tinto, headquartered in the United Kingdom, is one of the world's largest producers of raw materials. The mining giant extracts various products from the earth, such as iron ore, aluminum and copper. Its global operations include several of the highest-volume diamond mines, making Rio Tinto one of the largest diamond producers in the world.

Industrial metals are Rio Tinto's main money-making tool, and the use of these materials in manufacturing, technology, and other industries is growing. However, the demand for Rio Tinto products is cyclical, which is common for many raw material and mining companies. Even so, Rio Tinto is still one of the largest and most stable metal producers, and it is very suitable for investors who want to make some auxiliary investments in the diamond industry.

Anglo American, headquartered in the United Kingdom, is another top mining stock whose global operations produce platinum, copper, nickel, iron ore, and of course diamonds. Although metals and ores account for the majority of Anglo American's sales, they are actually the best way to play the diamond industry. Anglo American Group owns 85% of the diamond company De Beers Group (the company is responsible for the slogan "Diamond Forever"), and the other 15% is owned by the government of the Republic of Botswana.

About one-third of the world's rough diamond supply is produced by De Beers and its partners. De Beers also cuts and polishes diamonds and has retail assets that sell finished products to consumers. Together with Anglo American’s base metal production, this is a mining and diamond investment that pays dividends to shareholders every six months, so it deserves serious consideration for investors interested in generating income.

Signet Jewelers is one of the largest gem jewelry retail businesses. Its subsidiaries include Kay, Zales, Jared, etc. The company has approximately 2,800 retail locations, most of which are located in the United States. After the COVID-19 pandemic, demand for jewelry soared, and Signet's sales (and stock price) also rose. 

However, the Internet is changing consumer habits, and Signet has made some acquisitions to ensure it remains relevant in the digital age. In 2017, it acquired R2Net (the parent company of JamesAllen.com) to strengthen its e-commerce business, and in 2021 it acquired jewelry rental startup Rocksbox and small destination jeweler Diamonds Direct. I don't know how long the gem sales boom will last, but Signet Jewelers is the first choice for this niche market in retail.

Diamonds and jewelry are not the fastest growing industries, but these gems hold a special place in the world. Don't expect any rapid growth in investment in this field, but there are some diamond jewelry and accessories manufacturers that have been tested in practice that deserve investors' attention.

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