Fancy coloured diamonds have been particularly sought after since the Argyle mine in Australia began providing a limited but regular supply of rare diamonds in the mid 1980’s. Fancy coloured diamonds are a much sought after investment by canny investors who wish to shelter their investments from the highs and lows of market instability.
If you are considering an investment, fancy coloured diamonds represent a substantially better prospect than other investments such as clear coloured diamonds due to their colour, cut, carat, hue and as result their rarity. So, if you’re looking for an investment which is unique and will not only hold its value, but exponentially increase, then fancy coloured diamonds are the investment which discerning investors should consider.
Diamonds are one of the hardest natural substances known to man. It is this durable property which makes diamonds a tangibly desirable asset. Physical assets like diamonds are never going to deteriorate and are, as a result, inflation proof. Given their rarity, fancy coloured diamonds and in particular, rare pink and red diamonds provide a much better investment shelter to withstand financial knocks than the more common white diamonds.
In the short term, investing in fancy coloured diamonds and indeed diamonds of all descriptions are not entirely without risk as the 2008 crash has shown us. Diamond Mining companies such as Rio Tinto lost substantial value in its stock from $138 to $33.00 in 2015. However, when compared to more traditional investments such as property, stocks and shares, gold, oil or other metals, diamonds fare remarkably well.
Where the Dow Jones index flat lined and dipped between 2000 and 2012, fancy intense pink diamonds of around 3.00 carats and above, rose year on year steadily by almost 440%. Gold on the other hand peaked following the 2008 crash in 2011 by 460% and then fell sharply a year later by 100%. Clear diamonds had a steady but less dramatic 80% rise over the same period and once again, fancy coloured intense yellow diamonds rose more steadily than gold and overtook gold prices in 2012 to continue their 340% rise from 2000.
According to market comparisons, fancy coloured diamonds performed better than almost any other traditional investment. Indeed, the upward trajectory of these diamonds has been largely uncorrected and has seen a solid growth year on year in comparison to other traditional investments like gold or other metals.
Over a 12-year period, intense fancy coloured diamonds have enjoyed an almost 500% increase which represents outstanding growth, given that this period covers the financial crash of 2008 which saw every other traditional investment tumble dramatically in value. For example, in 2003 a 3.58 fancy coloured pink pear shaped diamond was sold at auction for £115,000 per carat. Just 4 years later a similar diamond was sold at $390,000 per carat in 2007. Per carat, fancy coloured diamonds outperform clear diamonds by at least 300% over approximately 10 years. Compared to the Dow Jones and traditional business investments, fancy coloured diamonds stand head and shoulders above them in terms of return on investment.
Take for example a perfect white diamond which may be worth $30,000 per carat, and compare that with a flawless vivid pink diamond which could sell for $1 million per carat or indeed a rarer vivid red diamond which may fetch $2 million per carat, you will see how fancy coloured diamonds have held their value and shown exceptional growth over the short to medium and longer term. What is important, is to ensure that you find a knowledgeable and certified diamond broker who can advise you about your options to purchase fancy coloured diamonds. If you are not a diamond connoisseur yourself, you need to ensure that you can find an expert who is that you can trust. It really is a case of buyer beware as there are many unscrupulous people who would be only too happy to relieve you of substantial funds in return for lower quality diamonds.
Fancy coloured diamonds are undeniably an expensive investment, but represent tremendous value for money when you consider the supreme opportunities to dramatically increase your investment and harbour your wealth from the knocks and shocks of stock market or property market. If you can afford to invest in fancy coloured diamonds, you will undoubtedly be investing in a more stable and tangible asset than any other. Moreover, you’ll have the added advantage of being able to wear it as an exquisite and portable piece of jewellery, should you dare!