Naturally Colored Diamond Blog

Trend Alert: Loose Colored Diamonds as Alternative Investments

Posted by Tony Cathaway on 4/14/16 8:00 AM

In today’s ever-changing economical world, where market prices can fluctuate in an instant, stable opportunities for investment are essential. Thinking outside of the traditional volatile stock market has led many investors to alternative investments, specifically loose colored diamonds.

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Loose Colored Diamond Options

Fancy colored diamonds have been collected and traded for centuries by the wealthy and powerful.  However, it has been in recent years when the demand for unmounted, loose colored diamonds has come to the forefront. Loose colored diamonds have many advantages to their mounted counterparts. They are easier to be evaluated and have higher liquidity value. Another great attribute of loose colored diamonds is that they are easily transportable, as even the largest diamond can weigh almost nothing compared to cash or other commodities like gold.

Prices have been on a steady rise over the last 30 years and as availability decreases, loose colored diamonds as investments have proven to be a stable long-term addition to any investor’s portfolio. Very similar to buying anything at auction, the process for buying loose colored diamonds is the same. Potential buyers must first get familiar with the gems being offered by looking at the catalog in advance of the auction. Then, bidders analyze price estimates, and see if their budget is within that range. Bids can be placed either in person or via proxy. 

 Just how much can a loose colored diamond bring at auction? This depends on the rarity and quality of the gem. Here are some famous loose colored diamonds that brought in the most auction.

 

“The Pink Star,” a 59.60-carat fancy pink diamond that was mined in South Africa, is the largest known diamond rated by the Gemological Institute of America (GIA) as a vivid pink. It was auctioned at Sotheby’s in 2013 for an astounding $83 million. However, it has been reported that the buyer was unable to complete the purchase and the diamond is now held in Sotheby’s inventory.

Another well-known pink diamond sold at auction is “The Princie Diamond.” The 34.65-carat cushion cut gem was discovered over 300 years ago in India and rated as a fancy intense pink. What made this pink diamond so unique is its color changing properties, which reveal bright-orange-red fluorescence when viewed under an ultraviolet light. This one of a kind diamond sold for $39.3 million during a Christie’s auction in 2013.

The majority of these loose colored diamonds are mined in Africa, Australia and Russia.  Some have been discovered in The United States, as well. The Kelsey Lake Diamond Mine in Colorado produced a16.87-carat diamond, which was discovered in 1997. The record setting unmounted stone, known as the largest polished diamond of North American origin, sold at auction for $185,000.

Whether it is the size, color, or origin that make loose colored diamonds so unique and exquisite, it is fair to conclude that these gems are prized possessions for both collectors and investors.

For more reading on loose colored diamonds, click the link below: 

 Naturally Colored Diamonds

 

Topics: Alternative Investments

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