Here are the "TOP 10" reasons why coloured diamonds are considered such strong and wise investments:
1. WELL ESTABLISHED
Fancy coloured diamonds are internationally recognized, well established goods. They have been collected and traded by royalty for hundreds of years and have only recently become available to the general public. The prices have continued to increase in a steady, upward trend over the past 30 years and longer.
Diamonds are small, they weigh next to nothing and they are extremely portable, therefore, large amounts can easily be transported and concealed in emergency situations. Your entire portfolio can be stored in your pocket, set in a piece of jewellery or secured in a safety deposit box.
3. LONG TERM GROWTH
Even just a little research proves that over the past 30 years, the price appreciation of natural fancy coloured diamonds has dominated the market. Auction results prove the strength of coloured diamonds in today's market, not to mention that they have repeatedly broken auction house records for the highest price per carat ever paid at an auction for a diamond or jewel.
4. MULTI-FUNCTION ASSET CLASS
They possess multiple functions as an asset. For example, one can purchase for investment purposes a 5.00-carat, Fancy Intense Yellow Diamond, set it in a ring and present it to his wife. The fact that she uses the diamond and derives pleasure from her jewel over time does not detract from the value in any way.
5. VALUE RETENTION
Contrary to colourless stones, fancy coloured diamonds have no fixed price. Their market value is determined by prices paid in the auction houses. The rarity of the colours found has everything to do with the prices and supply is not growing. Even the Argyle mine, which produces the world's most valuable pink diamonds, has publically announced their suspected closure by 2018.
An asset's value is determined according to its supply and demand. As the rarest gemstones on earth, of which only 0.01% of natural diamonds are fancy colours, their supply is quite limited. Moreover, many famous Hollywood movie stars have been seen adorning their coloured diamond jewellery in public, therefore, substantially increasing the market demand for these stones.
Coloured diamonds are extremely durable. In fact, as the hardest element found, after having been created in unimaginable conditions deep beyond the surface of the earth, diamonds can withstand just about any environmental situation.
Coloured diamonds are one of the rarest commodities in the world. They are found in only a handful of diamond mines in the world and even then only appear as a small percentage of full production. Some colours, Fancy Intense Violet, for example, are considered so rare that most companies will never actually see its shade.
They are a highly private asset and can be savoured on a daily basis. They can be easily stored for safe-keeping without ever sharing the information publically.
10. ABSOLUTELY BREATHTAKING
It is no secret that fancy coloured diamonds are simply breathtaking to look at. Regardless of who you are or what line of work you are involved in, everyone is absolutely mesmerized by the brilliance of a coloured stone. As a direct result of their beauty and unforeseen rarity, coloured diamonds are today considered exceptional investment options.
As technology advances and mining operations improve, more and more diamonds are extracted from the earth; however, fancy coloured diamonds may not be around forever. Volatility in any market tends to create activity ... Consider colouring YOUR portfolio!