Germans turning to diamond jewelry in uncertain economic times

Germans are buying polished diamonds as gifts and financial investments for their future as economic uncertainty continues.

They are buying diamond rings, gold watches and other items of jewelry due to the country's low interest rates and financial volatility.

The German association of jewelers and watch retailers, the BVJ, forecasts sales of $6.6 billion this year, the same as in 2011, and a record high.

BVJ Managing Director Joachim Duenkelmann predicts that the 2012 figures may even be higher than those for 2011.

The eurozone's official interest rates in the euro zone is just 0.75%, and it is possible the European Central Bank will further cut the rate at the start of 2013 in a move aimed at stimulating the economy of the region.