The market is not doing great, what’s the deal with colored diamonds? Should I invest in fancy colored diamonds?

fancy-color-diamondsI’ve spoken about this before but I thought it was worth a revisit especially since the stock market hasn’t been the best. Fancy colored diamonds is how we refer to the different natural color hues of diamonds. You can have yellow diamonds, pink, blue, orange, green and the most rare are red diamonds these come in various diamond cuts. These colored diamonds are a beautiful alternative to the white diamond although they do cost a bit more. As colored diamonds are very rare and the more rare a diamond is the higher the cost.
What makes a colored diamond so valuable?
The white diamonds are much more bountiful the colored diamond is about 1 in 10,000 of all the diamonds in the world. The production of colored diamonds has declined which makes it as mentioned earlier even more rare.
Where do Fancy colored diamonds come from?
Natural fancy color diamonds are completely created from nature and thus their worth stems from the fact that they are each a gift of the earth, each unique, each one of a kind. For the last 2.5 decades, the value of natural fancy color diamonds has only gone up. These prices are projected to continue to escalate.
The environmental conditions for a natural fancy color diamond have to be just perfect in order for nature to succeed in creating a stone full of such gorgeous color. While some investors may seek out certain colors to add to their portfolios there’s no doubt about it –prices for ALL colors of natural fancy diamonds are steadily rising. There are simply not enough colored diamonds to go around.
Recently, investors in commodities such as gold, silver oil and real estate have incurred incredible losses as the market has made a sharp economic downturn. Investors are looking for a better safeguard for their money. Fancy color diamonds are proving to be that safer solution.
Risk and Reward
Prices for natural color diamonds have only been increasing for the last 4 decades. Much has been written and predicted by financial analysts, industry experts and economic forecasters across the board regarding color diamonds and their future investment success. That in of itself speaks volumes about the small risk factors involved in investing in natural colored stones as long as investors purchase wisely and for the medium and long term.
High Reward
The rewards for investing in natural color diamonds are quite high. Industry experts agree these are safe and secure assets for an investor’s portfolio. Their extreme scarcity, distinctive beauty and great desirability only aid in making them wonderful investment opportunities. Not market shifts, nor interest rates, nor political upheaval can affect their value. Simply put, supply and demand are the main factors affecting the future values of natural colored stones, and these factors are only in the investor’s favor since low supply and high demand can only assist in producing profitable outcome.
If you are looking for a sound investment give Diamonds by Eyal in Boca Raton a call to discuss this investment further.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top