Fancy Color Diamonds Investment

10 Reasons Why Fancy Color Diamonds Are Smart Investments


When people look for a reliable investment they seek out commodities like gold, silver, or natural gas. Many investors overlook investment grade diamonds, specifically fancy colored investment diamonds, which rarely depreciate and are not subject to wildly volatile price quotes that accompany other major commodities. 

Here’s everything you need to know about why investing in naturally colored diamonds is a smart investment. 

1. Because of the solvency of several international financial institutions, combined with the constant devaluation in world currencies, investors are looking for reliable long-term investments that are easy to store, move, and difficult to damage. Investment grade diamonds meet this criteria and then some. 

2. Colored diamonds, and any diamond for that matter, is made up of some of the hardest substance in the world. Colored diamonds are not affected by extreme temperatures, high humidity levels, and are not affected by electricity, making them impenetrable assets that can be transported without fear of damage. 

3. Technically speaking, fancy colored diamonds are the single most concentrated form of wealth in the world, edging out high-flying commodities like gold and silver. Millions of dollars’ worth of colored diamonds can easily fit inside your pocket and weigh less than a few grams. Millions worth of gold or silver would be a pain to transport anywhere. 

4. As has been noted above, diamonds are the easiest investment to store, move, manage and maintain. 

5. Colored diamonds can be easily stored in everything from safety deposit boxes and jewelry boxes to high-end vaults. 

6. Diamonds can be sold anywhere in the world and traded for any currency.

7. Diamonds are rare in themselves, but naturally colored diamonds are exceptionally difficult to procure, as they rarely occur in nature. In fact, for every 1 carat of colored diamonds in the world, there are 10,000 carats of white non-colored diamonds in existence. Furthermore, of all the colored diamonds mined, less than 1% are able to live up to investment grade standards. 

8. While colored diamonds have been procured and mined on a consistent basis over the past few decades, that may soon change. Older mines are shutting down because they are procuring less and less rough diamonds, while a fewer number of new mines are opening in their stead. For instance, the world’s largest producer of pink diamonds, the Argyle Mine in Australia, will soon shut down in 2018. A limited supply of naturally colored diamonds means the price will only go up. 

9. Fancy naturally colored diamonds are well-known for their steady appreciation in value. While the 2008 crash caused gold to drop 30% and clear white diamonds to fall 20%, fancy colored diamonds actually rose 3% to 4% in value. In fact, for 30 years running, colored diamonds have never depreciated in value. 

10. Auction records have proven high-value colored diamonds actually double in value around every 5 years. Because natural color diamonds develop value over time, they are optimal for medium to long-term investors. Experts suggest investors let their stones appreciate for 4 to 6 years before they consider reselling. 
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