"The stock market is filled individuals who know the price of everything, but the value of nothing."
-- Phillip Fisher
10 Reasons For Natural Colored Diamonds
1 - Price Stability
Even in financially turbulent times, investors tend to liquidate more easily replaced assets first.
2 - Portability
Millions of dollars’ worth of diamonds will discretely fit in an envelope and can be easily bought and sold all over the world.
3 - Universal Commodity
The general consensus is that fancy colored diamonds are considered as the most concentrated form of wealth.
4 - Inflation Recession-Proof
In contrast to rising inflation of the Dollar, the value of fancy colored diamonds is not only stable, but also is consistently increasing. In addition, low interest rates on savings and fluctuating mortgage rates; mean that diamonds are much more likely to obtain higher profit margins. In fact, fancy colored diamonds have a proven track record of being amongst the best performing assets in times of currency devaluation and destabilized economies.
This information has been pulled from data accumulated from worldwide auction sales
5 - ESTATE PLANNING
People who invest in diamonds (jewelry) are unlikely to re-sell, given the significant emotional attachment they hold. Fancy colored diamonds are thus ideal as practical heirlooms, to remain in families for many generations. The GIA-certificate is considered as a form of protection, representing proof of the value of the diamond.
6 - Tax Friendliness
Diamonds do not attract taxes when being sold by private investors.
7 - Privacy
Most countries do not require the disclosure or registration of diamond holdings.
8 - Increasing Demand
Over the past three decades, the prices of fancy colored diamonds have steadily increased in value. As time passes, both the worth and the demand of diamonds have significantly gone up.
9 - Limited Supply
Analysts expect that the diamond demand will outstrip the supply from 2015 on, as a result of on-going diamond shortfalls and limited diamond exploration projects.
10 - Positive Global Market Developments
The demand of booming India and China caused the diamond prices to rise five times faster than gold in 2014. Smart investors will let the Chinese and Indian demand work to their advantage.
The Spectral Colors of Diamond Investment
Fancy colored diamonds are bought almost exclusively for their intensity and distribution of the color. Because of their rarity, they are much more valuable than white diamonds. The richness and deepness of the color is the most important consideration when investing in fancy colored diamonds. The more intense the color, the rarer the diamond is and the more market value the diamond will have. Fancy intense and vivid diamonds hold the highest prices in contrast to fancy faint diamonds. Pink, Blue and Yellow colored diamonds are the most sought after diamonds worldwide.
According to the highly reputable Gemological Institute of America (GIA), very few colored diamonds are valuable enough to carry their certification. Only diamonds of importance and higher value will qualify for GIA certification.
Supplies of rough diamonds will fail to match demand driven by China and India over the next five years due to a lack of new mines.
2015, Royal Bank of Canada (RBC)