10 Reasons Why A Natural Fancy Color Diamonds Are A Wise Investment? (2024)

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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.

10 Reasons Why A Natural Fancy Color Diamonds Are A Wise Investment? (5)

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

  1. 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.
  2. 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.
  3. Colored Diamonds are easy to store and transport.
  4. Colored Diamonds can easily be stored in a safety deposit box,or set into jewelry and be enjoyed and easily transported anywhere in theworld.
  5. Naturally Colored Diamonds can be sold anywhere and in anycurrency.
  6. 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.
  7. 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.
  8. 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.
  9. 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.

10 Reasons Why A Natural Fancy Color Diamonds Are A Wise Investment? (7)

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:

  1. 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.

  2. 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.

  3. 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.

  4. 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.

10 Reasons Why A Natural Fancy Color Diamonds Are A Wise Investment? (2024)

FAQs

10 Reasons Why A Natural Fancy Color Diamonds Are A Wise Investment? ›

In the past 30 years, fancy color diamonds have never depreciated in value. Auction houses' records show that many important diamonds have doubled in value every 5 years. Most investors consider natural color diamonds as a medium to long-term investment.

Are fancy colored diamonds a good investment? ›

In the past 30 years, fancy color diamonds have never depreciated in value. Auction houses' records show that many important diamonds have doubled in value every 5 years. Most investors consider natural color diamonds as a medium to long-term investment.

Why are diamonds a good investment? ›

They are very durable and can indeed last forever. This makes them a good investment as an heirloom to be passed down from generation to generation. Because of the durable/unbreakable nature of diamonds, they don't lose their value over time. Diamonds are a very small concentration of wealth.

Why is the color of diamonds important? ›

Diamond value is based (in part) on the absence of color

Diamond color is important: Most diamonds used in engagement rings are near-colorless with hints of yellow or brown. All things being equal, the more colorless a diamond is, the rarer it is, and this rarity will be reflected in its price.

What makes a diamond fancy? ›

Diamonds in the normal color range are colorless through light yellow and are described using the industry's D-to-Z color-grading scale. Fancy color diamonds, on the other hand, are yellow and brown diamonds that exhibit color beyond the Z range, or diamonds that exhibit any other color face-up.

What are the pros and cons of diamond investment? ›

The Pros of investing in diamond jewelry include a high resale value, long-term durability, and the potential for increased prestige. The Cons can include the cost of purchasing quality diamonds, as well as the possibility of loss or theft.

Which diamond is best for investment? ›

According to a well known diamond trade organization the ideal diamond for investment is a Round Brilliant from 1.01 to 1.49 carat, D-H in color and from IF (internally flawless) to VS2 (very slightly included) clarity.

Is A diamond stronger than gold? ›

A fingernail rests at the 2.5 hardness range, approximately the same hardness as gold and silver. A diamond rests at 10 on the scale. Without alloy on the MOH scale, gold, silver and zinc are at 2.5; copper is 3; nickel 4; platinum 4; steel 4.5; palladium 5, rhodium is 6, and iridium and ruthenium are 6.5.

Are diamonds a good investment today and the future? ›

A Safe Investment During Economic Uncertainty: Diamonds may be inflation-proof, making them a good investment option during economic downturns. A Beautiful, Versatile Investment: Buy loose stones (yes, even colored diamonds), and you can turn them into a diamond jewelry piece, like a diamond engagement ring.

Is diamond a better investment than gold? ›

Generally, gold/gold jewellery is preferred because of its long history as a storehouse of value and wealth. Diamond/diamond jewellery on the other hand does not bring in a higher resale value as gold, owing to market demand and the presence of intermediaries in the diamond industry.

What is the rarest color for a diamond? ›

Red diamonds are the rarest of the colored diamonds, with only 20-30 existing in the entire world. They get their beautiful red color from a rare process during their formation, which changes the crystal structure of the diamond and causes light to pass through it differently than colorless diamonds.

What color diamond is worth the most? ›

Red diamonds are the most expensive colored diamonds. Currently, only about 20 to 30 exist in the world. These diamonds derive their red shade during the mining formation. The process is uncommon, explaining why red diamonds are rare and extremely small in size.

What diamond color is best? ›

What's the best diamond color? Among white diamonds, D color diamonds are of the highest grade. D color diamonds are in the "colorless" range on a diamond color scale along with E color diamonds and F color diamonds. Fancy color diamonds such as yellow or pink diamonds have their own color grades.

What are the 4 qualities of a diamond? ›

Diamond professionals use the grading system developed by GIA in the 1950s, which established the use of four important factors to describe and classify diamonds: Clarity, Color, Cut, and Carat Weight. Diamonds can be fashioned into a variety of shapes and still be beautiful. These are known as the 4Cs.

Which diamond shape is most elegant? ›

The marquise cut is the ultimate in elegance. Its oval shape meets in pointed ends, resembling the hull of a ship—this cut is also known as the Navette cut (meaning “l*ttle boat” in French). In addition to being unique, this cut is also great for someone looking to create the illusion of elongated hands.

What are 10 different types of diamonds? ›

The most popular and well-known diamond shapes are the round brilliant, princess, oval, cushion, emerald, Asscher, marquise, radiant, pear, heart, baguette, and trillion cut diamonds. This guide explains the characteristics, advantages, and disadvantages of each of these different diamond shapes.

Are colored diamonds worth it? ›

While colored diamonds are considered more expensive than traditional colorless diamonds, their exact value can be difficult to determine. Keep in mind that every diamond is graded on a scale pursuant to its cut, clarity and carat with higher prices attributed to larger and higher quality diamonds.

Are fancy colored diamonds more expensive? ›

Colored diamonds are very expensive because of their rarity in nature, but lab-grown colored diamonds can provide a more affordable alternative. Lab-grown diamonds are exactly the same as mined diamonds, but are made under high temperatures in a lab rather than deep in the Earth.

How rare are fancy colored diamonds? ›

Seen in practically every color of the rainbow, colored diamonds are far rarer than diamonds in the D-to-Z color range. Only one out of 10,000 carats of fashioned diamonds displays fancy color, and a diamond's chances of displaying intense color are even less – one in 25,000.

What is the most sought after color diamond? ›

Which Diamond Color Is The Most Expensive? Despite the popularity of white diamonds, red diamonds take the prize for the most expensive diamond color. This is primarily due to their rarity. Red diamonds also differ in the source of their color from other colored diamonds.

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