Diamonds Investing Future

A few days ago while arranging the office we bumped in a few old Sotheby’s and Christie’s Auction books, about 10-15 years old. We opened them on a whim and were totally shocked – the price differences of Fancy color diamonds between then and now were outrageous. If we knew then what we know now, we would have probably bought every fancy intense and fancy vivid yellow and pink diamond we could put our hands on!

Prices of fancy colored diamonds went up in huge percentages, and looking back they are probably one of the best investments one could have made. Only keen investors took that path, and today they are reaping the profits, since colored diamond are popping up lately in auctions and not all of them are newly mined diamonds.

 

The big question is – how does the future look? Nobody knows for sure, but we can offer some educated estimates.

 

Before you turn to read what the future hold for us, you might be interested in information what is happening today in this field of investment. Press here to read the latest news and hot trends about investing in fancy stones.

Lately we hear more news that the Chinese and Indian economies are growing rapidly, and the most amazing fact is that the middle classes in these countries are enormous. Estimates say that in India about quarter of the population is middle class. That translates into about 300 million citizens. In China the numbers are more or less the same and growing rapidly. Another amazing fact is the high number of millionaires and multi-millionaires numbers in these countries, which are also growing rapidly.

In terms of “regular” diamonds it means that consumption is growing, and estimates say that until the year 2020 prices of rough diamonds will rise 5% annually. The high-end diamonds market is raging lately and evidence can be seen in the latest Sotheby’s and Christie’s auctions. Prices keep going up and new records are broken time and time again.

Another thing we can see is that more special investment groups are beginning to specialize in buying high-end FCD as an investment tool for their customers. Graff is the most known specialist group, and with the uncertainty going on in the stock markets and unstable gold prices, diamonds seem to be a good and stable investment, especially high-end FCD and Large white diamonds. In terms of color – rare colors are showing amazing strength in terms of pricing.

It’s difficult to determine exactly where prices are going, but history and the way today’s markets are acting help us to expect that the trend will continue and prices will continue to climb. Unless something totally unforeseeable happens.