Trends of Investment in 2012
As Valentine’s Day 2012, revealed a growing demand for Fancy Color Diamonds. It is no wonder that in the week following, FCD Diamonds are on the minds of amateur and serious investors alike. With recent market reports confirming what color diamond investors have known all along. The smart money is easily portable, hard assets and a long-term view and this attitude is proving to be of global proportions.
Ask any investment guru and they will tell you the same story, now is the time to make an investment in real assets and nothing fits the bill better than FCD.
What the Experts Are Saying?
From the World Diamond Center in Antwerp, Belgium, Chief executive officer Ari Epstein predicts that by 2016 China will outstrip the United States to become the main destination for diamond exports from Antwerp. In 2011, a total of 9.28-M carats worth $5.09 billion dollars US were imported to China. With a transaction volume (including imports and exports), the Diamond Center reached $60 Billion Dollars US in 2011. Out of this, four out of five uncut diamonds came from Antwerp. Epstein goes on to say, that Chinese consumers coupled with a growing interest in diamonds investment is behind the increasing demand.
In an interview with The Financial Times, Daniel Garrahan, Graff Diamonds CEO, Francois Graff talks about the increasing global demand for Fancy Colored Diamonds. Graff foresees the demand growing into the triple digits in Europe and Asia and predicts substantial price increases over the next ten years. When asked how the production of newer mines in Russia and Canada will affect supply and demand, Graff goes on record saying that these new markets will not make a substantial increase in the current supply rate of three percent and demand will continue to outweigh by six percent.
BMO Capital Markets financial analyst, Edward Sterck is predicting a nine percent rise in the price of FCD.
Sterck breaks it down to:
* 1.4 per cent in 2014
* 2.6 per cent in 2015
* 3.2 per cent in 2016
Add to this the recent press from the World Money Show in Orlando Florida, which will feature a rare Red Diamond along with a selection of brilliant color diamonds and the message could not be any more clear. Investment trends will continue to favor hard assets.
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