Natural Fancy Color Diamonds were never thought of a few years ago as an investment but the past thirty years have shown them to be one of the few precious gem and metals to have shown a significant appreciation. These rare and highly sought after gems are one of the coolest and smartest investments of the year, we will show you with ten reasons why this is the case.
One ~ Global Recognition:
Natural fancy color diamonds have global recognition. They have become a well-established commodity sought after by brokers and collectors followed by the general public and recently by hedge funds and investors. The past thirty years has shown a steady increase in the diamond market as a whole and this upward trend by all forecasts is predicted to continue.
Two ~ Rising Appetite:
In November 2013 The New York Times printed an article entitled "A Rising Appetite to Invest in Color Diamonds" which illustrated a trend in the open market for large natural fancy color diamonds. Large gems fetching millions of dollars have become sound investments. The main reason is that rarity and value has made them very easy for re-sale with high profits.
Three ~ Real Values:
An asset is valued according to its supply and demand. Gemstones in general are rare, diamonds are rarer and natural fancy color diamonds are the rarest found in the diamond world. Supply is at present limited and is becoming more so as sources dry up. The market demand is increasing; celebrities are raising awareness and creating aspirations to become an owner of one. The value of fancy natural color diamonds has indeed become an undeniable fact.
Four ~ Value Retention:
There is no fixed price list for natural fancy colored diamonds as opposed to classic clear white diamonds, their market value depends on historical and current prices paid, particularly in auctions which reflect accurately supply and demand.
Unlike other commodities, there is no depreciation with use even in cases where the diamond is set into jewelry and worn with delight for many years.
Five ~ When Rarity Becomes Rarer
Natural fancy colored diamonds are by definition rare items. They are scarce being found in only a few of the world's diamond mines and are difficult to procure.
Within the general field of fancy color diamonds some shades and hues are particularly difficult to find. Most diamond companies have never seen a 'fancy intense violet'. Other colors are attributed to specific mines which are projected to diminish production or even close.
The Argyle Mine in Australia is the major producer of pink diamonds and plans to close in 2018. This has precipitated a run on these stones that is quite unprecedented. This is not unique and other old mines are ending production and there are no great expectations for new mines to open. Current and future values of natural fancy color diamonds in these circumstances can only be expected to rise.
Six ~ Long Term Growth Breeds Confidence:
The last thirty years have shown that the value of natural fancy color diamonds has uninterruptedly grown. The highest prices per carat over the past twenty years have been for color diamonds, more than jewelry or clear white diamonds. This is a clear indication that these stones will lead the long-term diamond investment market.
Seven ~ Relax with a Steady Appreciation:
Diamonds have a history of a steady and stable appreciation. As a natural resource investment, the diamond is one of very few that has a record for a continual yet steady growth. In 2008, there was a period when gold fell by over 30% and classic clear white diamonds dropped 20%, yet natural fancy color diamonds not only kept their value but rose by about 4%. Sudden and rapid fluctuations always present a risk in the world of investment, natural fancy color diamonds has not fallen into this category and understanding their demand and supply creates the confidence that neither in the future will they do so.
Eight ~ Indestructible Investments:
The diamond as a tangible commodity has a unique quality in as much as it is the hardest element known it is indestructible and will retain its gem properties and withstand any environmental damages as well as guaranteeing its intrinsic value.
Nine ~ The Convenience of Concentration:
As natural fancy color diamonds are highly valuable, there are no problems of storage space or prohibitive transport logistics. Safe deposit boxes are available at many banks and other financial institutions and diamonds can always be set in jewelry and worn securely. The fact that these gems can be held in the palm of a hand and have a value of even millions of dollars makes this investment extremely attractive from a portable point of view.
Ten ~ Once a Beauty Always a Beauty:
A diamond is known as the 'king' of the gemstone world and the color versions are breath-taking in their own right. Every color has its own accompanying emotion and the lustre and sparkle from being a diamond accentuates the magic of precious stones. The beauty of an excellent investment coupled with being one of the wonders of the world makes natural fancy color diamonds absolutely irresistible.