Investment

Why Invest in
Natural Fancy
Color Diamonds?

In recent years, increasing attention has been focused on purchasing diamonds for investment purposes. Diamonds offer many advantages to investors:

• A hard asset that can hedge against inflation and the de-valuation of fait money.
• Low correlation to other asset classes and almost zero correlation to equities.
• Stable long-term returns and much lower volatility than traditional asset classes.
• Potential for substantial long-term returns due to a supply-demand imbalance.

Color diamonds in particular offer an incredible opportunity for profit over the long term as the supply-demand balance is more acute than in the white diamond market. Supply is exceedingly tight and likely to get tighter. Only 1 in 10,000 carats mined are fancy color, so very little new supply enters the market each year. Looking forward, many of the major mines producing fancy color diamonds are near the end of their productive lives, so supplies are expected to become even more restricted in the future. At the same time, demand for color diamonds among the wealthy, collectors and investors – is far outstripping the supply. Color diamonds offer the potential for truly tremendous gains for the astute purchaser.

As a result, color diamond sales at auction continue to make not just headlines, but to break record after record.