Single Stone Investment – Novel Collection

In our previous newsletter we discussed Fancy Color diamonds as an investment route and we discussed 3 main forms of doing so:

   1.   Single stone investment

   2.   Investing in a collection of stones

   3.   Investing in Unique estate jewelry with a Fancy color diamond

Today we would like to focus on a single Fancy Color Diamond investment. Investing in fancy color diamonds has proven to be a very good investment route, especially for the long term investor. Even small color diamonds are a much better investment route than investing in small “regular” diamonds, so if one would like to invest slowly in the diamonds market the fancy color market is vibrant and profitable. 

When looking for a single diamond investment it would be wise to focus on a diamond that has a rare hue (color) and preferably good color characteristics. As we monitor the prices of fancy diamond in the last few years in the general market and in auctions, the price of rarer colors such as red, blue, green, purple and pink have been climbing steadily. Although they are a very good investment due to their rarity and market demands, their prices today are relatively high. On the other hand, the yellow and the orange colors are still well priced and will enable the average investor a nice beginning. Investors who wish to invest a few thousand dollars can still go for the rarer colors but will have to compromise over the size of the diamond – you can find great blue and pink diamonds in sizes less than half a carat in the same prices of yellow and orange ones that are above one carat.

In our opinion, going for a 1 carat pink diamond would be a wise investment route and will provide great returns in time. Blue, Green, Orange and Yellow (with Intense or Vivid color grade) diamonds are also pretty sound investments. We definitely believe that they are great investments and our experience predicts that their prices are still rising.

We would like to share with you a research that was done by Luc Renneboog and Christophe Spaenjers regarding the returns on rare diamonds and gems.

Read about more investment routes of Fancy Color Diamonds here!