One of the Best Investments Today: Fancy Colored Diamonds
Fancy colored diamond craze
Why invest in fancy colored diamonds?
To be classified as “fancy”, diamonds must not only possess color (the ratio of colored diamonds to colorless diamonds is 10,000: 1), but must possess a depth of color that places them within the Gemological Institute of America’s fancy color range.
Notably, fancy diamonds are as beautiful as they are rare, and have gained popularity over the last three decades. Celebrities like Jennifer Lopez, Halle Berry, Nicole Kidman, Heidi Klum, Kate Winslet, Beyonce and Paris Hilton have flaunted fancy colored diamonds within the last three years.
In order of rarity, fancy colored diamonds exist in the following colors: yellow, brown, blue, green, black, pink, orange, purple and red. Many fancy colored diamonds possess secondary colors as well.
Usually, the rarer the fancy colored diamond, the more expensive it is. Due to the increasing demand for the rare commodity over the past few decades, the prices of fancy colored diamonds have increasingly soared.
Diamond experts predict that the prices of these finite resources will continue to escalate for decades to come, and hence recommend them as one of the best investments to be made at this time.
This article highlights several reasons for investing in fancy colored diamonds today.
Steady increase in price over the past few decades
Fancy colored diamonds have proven to investors that they are recession- proof. They are one of the few assets that have increased in value during the recent economic decline. When inflation becomes a worry, smart investors turn to hard assets to invest in- fancy colored diamonds are now considered one of the best investments by both investors and experts.
The higher the grade of the colored diamond and the rarer it is, the greater its potential for appreciation. Experts agree that the prices of colored diamonds, pink in particular are on the rise, noting that a barrier was broken in recent years that thrust pink diamonds, which were previously selling for $ 500,000/carat into the $ 1 million/carat realm.
As a matter of fact, in 2010, the most expensive jewel that was ever auctioned in the history of all time was a fancy pink diamond called the “Graff Pink”. The 24.76 carat stone was sold for $45.6 million, which translates to approximately $1.9 million/ carat.
As the US dollar depreciates, foreign colored diamond dealers charge more in U.S. dollars for their stock, in order to compensate for the lower value they will receive when they convert the dollar denominated sale to local currencies.
Increase in demand for fancy colored diamonds
With decreasing supply of highly graded fancy colored diamonds and a significantly increasing demand for them, these precious stones are expected to continue their dramatic increase in price over the next decade.
South African production of fancy colored diamonds has declined by about 50% over the past 2 years. With new markets opening up for the rare colored diamonds, there will be significant upper pressure on prices.
Investors who take advantage of the situation as it presently stands, are predicted to profit the most in the long term.
Diamonds have no shelf life
Diamonds do not age; and as a result they have no shelf life. A 200- year old stone looks as new as it was when it was first polished.
Once fancy colored diamonds are not abused or mishandled, they will retain their timeless sparkle and will never look old. Unlike most other products, investors will not have to worry about the depreciation of fancy colored diamonds due to fading appearance with time.
Diamonds are the best form of portable wealth in the world today. A million dollar diamond could fit in your jacket pocket or on your wife’s finger.
Like all other diamonds, fancy colored diamonds can be transported and sold with ease almost anywhere in the world.
Exotic and Rare
Historically, only royalty, aristocrats and celebrities have owned or worn the exotic gems known as fancy colored diamonds. However times have changed and these rare gemstones can now be purchased by today’s jewelry lovers as well.
The sparkle and brilliance portrayed by fancy colored diamonds give their owners a sense of personal gratification in knowing that they possess such beautiful timeless treasures. Regardless of the size or hue, each unique color has its own desirable quality.
The alluring hues of fancy colored diamonds are definitely fascinating and give one other significant reason for making an investment in these precious stones.
As the global demand for fancy colored diamonds rises, countries like China and India have been taking advantage of the worth of these gems in an effort to protect and increase their wealth.
The discovery of a new mine that produces fancy colored diamonds does not happen very often. The fact is, fancy colored diamonds are extremely rare, and their production is finite. Due to their rarity and huge demand, economic experts predict that their value will continue to rise for decades to come.
If you choose to invest in a timeless asset that has one of the greatest potentials for increasing your wealth in decades to come, go out into the world of diamonds as soon as possible, and choose the largest rarest fancy colored diamond that you can possibly lay your hands on!
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