10 Reasons Why Natural Fancy Color Diamonds Are A Wise Investment
When looking for a
solid investment many people turn to commodities such as gold, silver or
natural gas. Many people however are not aware that diamonds of all sorts (see:
Investing in Type IIa Diamonds as well as Diamonds as an Investment, other articles
written by CaratsDirect2U) are worth taking a look into. This Article outlines the
main reasons why investing in Fancy color diamonds is a good investment.
1) Given the closure of
many financial institutions, the devaluation of many different currencies and
the general lag in world finance, investors are looking for a solid form of
investments, that is hard to damage and easy to move. Here is a list of the top
reasons why investing in a natural fancy color diamond is a good idea:
Diamonds are extremely durable; they are the hardest substance known to man.
They are not affected by changing temperature, humidity or shocks creating an
asset that can be stored or transported without potentially damaging the
3) Natural fancy Colored Diamonds are the most concentrated form of
wealth on the planet. One million dollars of diamonds can fit into your pocket
and weigh less than a gram, where a million dollars of gold would weigh close
to 35 pounds.
4) Colored Diamonds are easy to store and transport.
5) Colored Diamonds can easily be stored in a safety deposit box,
or set into jewelry and be enjoyed and easily transported anywhere in the
6) Naturally Colored Diamonds can be sold anywhere and in any
7) Colored Diamonds are exceptionally rare. For every 1 carat of colored
diamonds, 10,000 carats of white diamonds are mined. Of the production of color
diamonds mined, less than 1% of color diamond production would be considered
8) Colored Diamonds are becoming more difficult to procure. Older
mines are shutting down due to less and less rough diamonds mined and fewer new
mines are opening. The major producer of pink colored diamonds has predicted
that the Argyle Mine in Australia will be closing in 2018, due to the ending of
diamond production in the mine. This fact alone means that there is a limited
amount to invest in and that means that the value of fancy colored diamonds will
only go up.
9) Natural Colored Diamonds have a history of steady appreciation.
In 2008, when gold fell 30% and white diamonds dropped 20%, natural fancy color
diamonds did not fall rather had a small rise (3-4%) in appreciation. In the
past 30 years, fancy color diamonds have never depreciated in value.
10) Auction house 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. Real appreciation of natural fancy color
diamonds develops over time. It is suggested to let this hard asset to
appreciate for 4 – 6 years before reselling.
When thinking about investing in Fancy Color
Diamonds, it is likely to be profitable when the four following facts are taken
1) The stone must kept long enough. Diamond prices only improve
over time. Wear it and enjoy it in the meantime. Even pass it to your kids, if
there is no necessity to sell.
2) The larger the diamond—the better, the reason behind this is
that is because most diamonds are found in small fractions, rather than big
solid ones, thus making them rarer. So when you come across a diamond weighing
more than 5 carats, it is already considered “rare”, regardless what its color
grade is. Remember, a 2-carat diamond costs more than 2 1-carat diamonds. So
even your budget constrains you to purchase to light yellow or light pink, it
can still be highly valuable when the carat weight is ample.
3) Chances to find pure red, pink or blue
diamonds are so little that when one such diamond is found, it carries great
value due to its scarcity. Most colored diamonds are found with underlying
tones. There are 27 standard hue names that GIA normally uses, but the lab also
recognizes the 270 variations that could appear when the modifiers are counted
in. Colored diamonds’ evaluation is different from the colorless diamonds. The
GIA uses terms such as Faint, Very Light, Light, Fancy Light, Fancy, Fancy
Dark, Fancy Intense, Fancy Deep and Fancy Vivid to describe the intensity of
color in the diamonds, with Fancy Vivid being the most desirable.
4) The concept of investing in Fancy
Colored Diamonds as a commodity is still a new idea in the mind of most
investors and it may not be easy to introduce. But with the above facts it
seems to be a very solid investment with very good potential.
Many of our diamonds are accompanied with
a GIA certificate. We stock many popular shapes such as: Round, Princess,
Cushion, Emerald, Radiant, Asscher and Oval. Upon request we can mount the
diamonds in one of our rings or pendants.
If you have any questions about investing
in fancy color loose diamonds please feel free to contact our expert jewelers