Some of what we have learned from past and present financial hardships is the need to prepare ourselves, and secure our future as best we can. Given the ups and downs of the markets, investors are searching for alternative investment options that demonstrate stability, while still maintaining a steady appreciation.
After studying the price performance of natural fancy colored diamonds over the past 15 years, it is no wonder they have managed to gain so much attention as one of today’s strongest assets.
A natural fancy colored diamond is one of the rarest elements found on earth. Certain colored diamonds are found more often than others, but even the most common are found less than 0.1% as often as a quality colorless diamond carat.
Colored stones 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 colors, such as Fancy Red, Intense Violet, or Vivid Blues are considered so rare that most companies will never actually see them.
Different characteristics are considered when assessing the overall value of a stone. Needless to say, the rarity contributes a large portion of the value. However, just as important as supply, is the demand. Market demand for certain colors will ultimately determine how high the prices appreciate over the years, and how difficult it will be to sell when the time comes.
Colored diamonds have always been directly correlated to royalty and prestige, and were collected by some of the most famous kings and queens in the past. It was only in the beginning of the 21st century that the popularity of certain colored diamond jewelry among the rich and famous began to grow. As the years passed, and more of the influential celebrities displayed their colored diamond jewelry in public, fashion trends began to pick up on the style. Furthermore, with the development of the Internet, colored diamonds are now available to the general public at affordable prices – demand has appreciated at a phenomenal rate.
As mentioned previously, natural fancy colored diamonds have always represented power, prosperity and wealth. As a result of their history, they are collected and valued all over the world. They are well established, and internationally recognized goods.
Natural colored diamonds have, and will continue to, demonstrate value retention as a result of their high demand and depleting supply. Furthermore, since they are so rare, each one of the diamonds found are entirely unique, one-of-a-kind pieces. As a result, there is no fixed price list. Their value is determined by the prices paid at auction. Recently 13 price records have been broken for these diamonds.
The investment market for fancy colored diamonds works quite similar to other rare alternative investments. When purchasing an exquisite piece of art, one wouldn’t even consider the purchase without having someone first assess it, and perhaps consult with experts on its value and earning potential. Colored diamonds are very much the same. Since there are no fixed prices, you will need to find a well connected expert within the industry that you can trust.
You will also need to become as familiar as possible with how fancy colored diamonds are assessed. A great source for all the necessary diamond education is my company, Leibish & Co. Fancy Color Diamonds. On our website we offer an extensive education portal for fancy colored diamonds.
Once you have a grip on the material, and you have found a consultant you can trust, begins sourcing the colors that mesh with your personality best. One of the greatest benefits of colored diamonds is the ability to enjoy your investment without devaluating it over time. Hence, it only makes sense to invest in color that you or your loved ones will enjoy.
Precious metals, stocks, or bonds can often be liquidized at the click of a mouse. Other alternative investment options are somewhat more difficult to dissolve. How quickly one can liquidate an asset doesn’t necessarily impact potential investment returns, however, it is something investors need to take into account.
Certain colored diamonds can be sold in auction, but often auctions are limited to diamonds valued at $100K or above. Depending on the rarity of certain colors, smaller stone or pieces of jewelry can make it to auction as well. Having the help of individuals well connected, and well established, in the colored diamond industry will certainly help you as well. Some colored diamond companies are willing to buy back the stones, while others will help you locate a buyer – so make sure to ask about this when initially buying your diamonds.
Investors are slowly becoming more acquainted with utilizing natural fancy colored diamonds as investment options. No one can predict the future, but after assessing the past price performance of colored diamonds, it is no wonder they exhibit investment characteristics that other investments can only dream about emulating.
This article was written by Benji Margolese, Marketing manager of Leibish & Co. Founded in 1979, Leibish & Co. is the world’s premier online resource for natural fancy colored diamonds. Based in Ramat Gan, Israel, and with customers around the globe, Leibish enjoys an unparalleled reputation for integrity and service. The Company offers a wide array of GIA-certified colored stones as well as a unique collection of multi-colored diamond jewelry designed in-house such as fancy yellow diamonds. The Leibish & Co. website features a comprehensive knowledge center for the Fancy Colored Diamond Industry, including informative articles and investment materials, and also offers a direct purchasing channel for global buyers.
Follow them on Twitter @LeibishFDiamond