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When looking for a solid investment many people turn to commodities such as gold, silver ornatural gas. Many people however are not aware that diamonds of all sorts, see:Investing In Type IIaDiamonds and Diamondsas an Investment, are worth taking a look into. In this article we give some of themain reasons why investing in fancy color diamonds is a good investment.
Given the closure ofmany financial institutions, the devaluation of many different currencies andthe general lag in world finance, investors are looking for a solid form ofinvestments, that is hard to damage and easy to move.
Why Investing In A Natural Fancy Color Diamond Is A Good Idea
- ColoredDiamonds are extremely durable; they are the hardest substance known to man.They are not affected by changing temperature, humidity or shocks creating anasset that can be stored or transported without potentially damaging theasset.
- Natural fancy Colored Diamonds are the most concentrated form ofwealth on the planet. One million dollars of diamonds can fit into your pocketand weigh less than a gram, where a million dollars of gold would weigh closeto 35 pounds.
- Colored Diamonds are easy to store and transport.
- Colored Diamonds can easily be stored in a safety deposit box,or set into jewelry and be enjoyed and easily transported anywhere in theworld.
- Naturally Colored Diamonds can be sold anywhere and in anycurrency.
- Colored Diamonds are exceptionally rare. For every 1 carat of coloreddiamonds, 10,000 carats of white diamonds are mined. Of the production of colordiamonds mined, less than 1% of color diamond production would be consideredinvestment grade.
- Colored Diamonds are becoming more difficult to procure. Oldermines are shutting down due to less and less rough diamonds mined and fewer newmines are opening. The major producer of pink colored diamonds has predictedthat the Argyle Mine in Australia will be closing in 2018, due to the ending ofdiamond production in the mine. This fact alone means that there is a limitedamount to invest in and that means that the value of fancy colored diamonds willonly go up.
- Natural Colored Diamonds have a history of steady appreciation.In 2008, when gold fell 30% and white diamonds dropped 20%, natural fancy colordiamonds did not fall rather had a small rise (3-4%) in appreciation. In thepast 30 years, fancy color diamonds have never depreciated in value.
- Auction house records show that many important diamonds havedoubled in value every 5 years. Most investors consider natural color diamondsas a medium to long-term investment. Real appreciation of natural fancy colordiamonds develops over time. It is suggested to let this hard asset toappreciate for 4 – 6 years before reselling.
Four Facts To Take In Consideration
When thinking about investing in fancy colordiamonds, it is likely to be profitable when the four following facts are takeninto consideration:
- The stone must kept long enough. Diamond prices only improveover time. Wear it and enjoy it in the meantime. Even pass it to your kids, ifthere is no necessity to sell.
- The larger the diamond—the better, the reason behind this isthat is because most diamonds are found in small fractions, rather than bigsolid ones, thus making them rarer. So when you come across a diamond weighingmore than 5 carats, it is already considered “rare”, regardless what its colorgrade is.
Remember, a 2-carat diamond costs more than 2 1-carat diamonds. Soeven your budget constrains you to purchase to light yellow or light pink, itcan still be highly valuable when the carat weight is ample. - Chances to find pure red, pink or bluediamonds are so little that when one such diamond is found, it carries greatvalue due to its scarcity. Most colored diamonds are found with underlyingtones. There are 27 standard hue names that GIA normally uses, but the lab alsorecognizes the 270 variations that could appear when the modifiers are countedin.
Colored diamonds’ evaluation is different from the colorless diamonds. TheGIA uses terms such as Faint, Very Light, Light, Fancy Light, Fancy, FancyDark, Fancy Intense, Fancy Deep and Fancy Vivid to describe the intensity ofcolor in the diamonds, with Fancy Vivid being the most desirable. - The concept of investing in FancyColored Diamonds as a commodity is still a new idea in the mind of mostinvestors and it may not be easy to introduce. But with the above facts itseems to be a very solid investment with very good potential.
CaratsDirect2U offers alarge selection of natural fancy color diamonds certified and not certified.
Manyof our diamonds are accompanied witha GIA certificate. We stock many popular shapes such as: Round, Princess,Cushion, Emerald, Radiant, Asscher and Oval. Upon request we can mount thediamonds in one of our rings or pendants.
Ifyou have any questions about investingin fancy color loose diamonds, please feel free to contact our expert jewelersat1-800-557-7095 or [emailprotected].
Investing in fancy color diamonds is indeed an intriguing prospect, often overlooked by many investors. The evidence provided in the article aligns well with established knowledge in the diamond industry. Let's break down the concepts and terms used in the article:
Diamond Categories:
- Earrings & Studs: Various designs and styles of earrings including studs, hoops, hearts, stars, etc.
- Engagement Rings: Solitaire rings with different shapes - Round, Asscher, Cushion, Emerald, Heart, Marquise, Oval, Pear, Princess, Radiant, Triangle, and others.
- 3-Stone Rings: Featuring round and other shaped diamonds.
- 2-Stone Rings: Multi-stone settings, including invisible and co*cktail settings.
- Loose Diamonds: Categorized into colored (natural and treated) and white diamonds, available in different grades and shapes.
- Diamond Pairs: Half Moon, Oval, Pear, Princess, Radiant, Round, Trapezoid, Triangle.
- Diamond Pendants: Various pendant shapes and settings.
- Diamond Bracelets: Including link and tennis bracelets.
- Wedding Bands: Different designs for wedding rings.
Investment in Fancy Color Diamonds:
- Durability: Diamonds are the hardest known substance, resistant to temperature changes, humidity, and physical shocks.
- Compact Value: They hold immense value in small sizes; a million dollars of diamonds can weigh less than a gram.
- Portability: Easily stored in safety deposit boxes or set into jewelry for wearable investments.
- Universal Value: Can be sold globally in any currency.
- Rarity: Colored diamonds are exceptionally rare compared to white diamonds, with less than 1% of colored diamonds being investment grade.
- Scarcity: Closure of older mines and fewer new mines opening contribute to the scarcity, like the predicted closure of the Argyle Mine in Australia.
- Appreciation: Historical data shows steady appreciation in value, even when other commodities like gold faced depreciation.
- Factors Influencing Investment: Considerations such as time held, size (larger diamonds being rarer), and rarity of specific colors affect their value.
- Evaluation: Grading of colored diamonds involves different terminologies like Faint, Very Light, Light, Fancy Light, Fancy, Fancy Dark, Fancy Intense, Fancy Deep, and Fancy Vivid, describing the intensity of color.
Investment Considerations:
- Long-Term Holding: Diamond prices tend to improve over time; wear and enjoy them in the meantime.
- Size Matters: Larger diamonds, especially those above 5 carats, are rarer and thus more valuable.
- Carat Weight: A single larger diamond may hold more value than multiple smaller ones.
- Rare Colors: Pure red, pink, or blue diamonds hold immense value due to their extreme scarcity.
- Grading System: GIA uses specific terms to describe color intensity, with Fancy Vivid being the most sought after.
Industry Insights:
- New Investment Avenue: Investing in fancy colored diamonds is relatively new in the investment landscape but shows promising potential due to its unique attributes.
The article ends by offering a selection of natural fancy color diamonds, mentioning the availability of various shapes and mounting options, along with contact information for inquiries.