Recent News about Fancy color diamonds
The Big Picture
Lingering economic downturn and a growing national debt have the top one percent pulling back from stocks. Two recent studies show that the wealthy are increasingly more pessimistic about investing in stocks. Instead, the studies conducted by Harrison Group and Spectrum group have shown millionaires are socking more money into hard investments and top on their list is Art, Real Estate and …Diamonds.
The recent $8.7 million sale of the Beau Sancy diamond by Sotheby’s seems to support the studies and wealth experts advise that while Wine, Art, Diamonds and Mansions do not appreciate at the same rate as stocks they also do not crash. You have to admit that a Monet in the dining room and a diamond on the finger are far more rewarding than watching the numbers drop on Wall Street.
Consultants Bain &Co. state that the diamond jewelry market worth $60 billion is facing structural shortages. Growth in China and India has demand doubling by 2020 and prices are expected to increase principally for large stones.
This ties in with the slow down reported in April by wholesalers like Raphael Maidi of New York City–based Maidi & Co who said, “there is more demand coming from outside the U.S., especially for larger and better-quality stones.” Maidi who believes the big issue in the wholesale market stems from difficulties with restocking inventories and there is a definite shortage in colored diamonds.
In agreement with this, Manak Jewels (San Francisco) sales director Sumeet Sethi says, “Anything in F and G colors is hard to find right now. And the same goes for colored diamonds, with brown and black diamonds more difficult to get.”
Included in the report from Bain &Co. is the prediction that demand will rise at a rate of over 6 percent per year overshadowing a 2.8 percent growth in supply. Bain, who bases his prediction on the growth of the middle classes in China and India states, “Even in the most conservative growth scenario, the estimates are clearly very positive,”
Bella Ideale Diamonds
Consulting company, Bella Ideale Diamonds has published an article that will be of interest to colored diamond investors. In their article the company gets very in depth about what diamonds make the best investments.
The article offers details about the size, color and quality of colored diamonds that make the best investment. Company president Paul Buchanan states, “It’s difficult to find any investments in colored diamonds that have not consistently appreciated in value over the past 30 years. Select white diamonds, the kind we normally think about, have also done well, but have not had the appreciation consistency of colored diamonds,”
Listed, as among the most expensive but with the highest appreciation are Red, Pink and Blue diamonds which have shown an appreciation of 15 percent or greater annually. Yellow diamonds with good saturation have also done very well.