Investing In Colored Diamonds in 2021…And What Else?

The first quarter of the year has gone and investors are scouring the market to identify trends for their next big investment.

So which markets should you keep an eye out on?

Investing in Colored Diamonds

Coming up time and time again, colored diamonds continue to show growth in 2021. Despite supply chains being disrupted in 2020 due to the pandemic, colored diamond prices don’t seem to be significantly affected. In fact, the very first colored diamond auction in 2020 was met with record breaking sales.

$26 million pink diamond

Colored diamond prices do seem to continue their upward trend. In fact, in May, 2021, a new record was set for purple-pink diamonds when the Sakura Diamond sold for $37.7 million AUD. In a report published by the Fancy Color Research Foundation, it is evident that pink, blue, and yellow diamonds prices are all going up. More specifically:

Pink diamonds experienced a 0.4% growth, with 2 and 3 carat categories rising by 1.5% and 1.4% respectively.
Blue diamonds experienced a 0.5% growth in price, with 1.5 carat diamonds rising by 1.5% to 1.9% depending on color saturation.
Yellow diamonds showed a 1.1% and 1.2% increase for 3 and 10 carats respectively. As opposed to blue and pink diamonds through the overall category did see a slight decrease. This is no need for alarm however, since yellow investment grade diamonds saw an overall increase as stated above.

Time and time again we see that no matter the market situation, colored diamonds seem to be an excellent alternative investment, and have shown to retain (or even gain) value.

But what if you wanted something a bit more “adventurous”…

Investing In Cryptocurrency

Ever since the mysterious Satoshi Nakamoto created Bitcoin over a decade ago, there have been firm advocates for and against cryptocurrencies. Overtime however, more and more cryptocurrencies started to emerge, and as the number of adopters rose, so did their value. Something interesting has happened over the past few months…

Multiple cryptocurrencies have been climbing to jaw dropping numbers in 2021:

Bitcoin

bitcoin price coindesk graph

Ethereum

ethereum price coindesk graph

Even cryptocurrencies that were originally created as a joke, such as dogecoin, have seen their fair share of value increases.

dogecoin price coindesk graph

Unlike colored diamonds, cryptocurrencies are significantly more volatile and are subject to massive value spikes and dips at a moment’s notice.

From the graphs above, while crypto's are off from their all-time high, they are still showing greater than 100% year over year increases in their prices.

Investing in NFTs

If you are not a fan of the cryptocurrency volatility but you want to enter the digital world, perhaps NFT (non-fungible-tokens) are right for you. Similar to diamonds or works of art, their value is tied to exclusivity and rarity. The most popular and perhaps most confounding NFT market is none other than NBA Top Shot. Showing massive growth in the past months alone, NBA Top Shots has processed over $250 million in sales and there are no signs of it slowing down.

NFT-Web

If you would like to learn more about NFTs and if they are the right alternative investment for you, check out our post “Everything You Need To Know About NFTs” for more insight.

Investing in Collectable Sports Cards

If you want to combine a hobby with investing, then collectable sports cards might be the alternative asset for you. Amidst the global pandemic, when most other investment assets took a hit, this particular industry was growing rapidly.

Normal and rookie cards from superstars and hall-of-famers of every sport were setting jaw-dropping records the likes of which the industry had never seen. Values were seemingly doubling or even tripling compared to those from just a year ago, and that was only the start.

Here are just some notable examples with price-tags close to those of fancy colored diamonds:

1952 Mickey Mantle

January 2021, a 1952 Topps Mickey Mantle sold for $5.2 million
April 2021, an Upper Deck Exquisite Collection Rookie Patch Autographs #78 LeBron James sold for $5.2 million
In February 2021, a 2018 Panini National Treasures 1 of 1 Logoman Autograph Luka Doncic sold for $4.6 million
August 2020, a 2009 Bowman Chrome Draft Prospects Superfractor Autograph Mike Trout sold for over $3.9 million
In April 2021, a 2000 Playoff Contenders Championship Rookie Ticket Autograph #144 Tom Brady sold for over $2.2 million
September 2020, a 2013 Panini National Treasures Logoman Patch Autograph Giannis Antetokounmpo exceeded $1.85
July 2020 - 2003-04 UD Exquisite Collection LeBron James rookie card was expected to sell for $1 million and it sold for $1.8 Million
March 2021, a 1996 Topps Chrome Refractors #138 Kobe Bryant Rookie Card sold for close to $1.8 million

The list can go on and on. Furthermore, looking through recent public auction lots such as Goldin Auctions and Robert Edward Auctions, more record breaking prices might just be around the corner.

Some Honorable Mentions

Invest in Whiskey

Often overlooked, whiskey can indeed be a good alternative investment asset to consider. While not as big as the colored diamond, collectable card, or cryptocurrency industries, some whiskey bottles have set some pretty notable records at public and private auctions. Here’s a few:

Isabella’s Islay - $6.2 million
1926 Macallan 60 year old - $1.8 million
Macallan M - $628,205
Dalmore 62 - $250,000
Glenfiddich 1937 – $71,700

Invest in Luxury Watches

Instead of keeping your investment locked up in a vault or sitting in a digital world, why not enjoy it? Luxury watches are a perfect investment for those who want to get some more enjoyment and use out of their investment assets. Some very notable watches include:

Graff Diamonds Hallucination - $55 Million
Graff Diamonds The Fascination - $40 Million
Breguet Marie-Antoinette Grande Complication Pocket Watch - $30 Million
Chopard 201-Carat Watch – $25 Million
Patek Philippe Supercomplication – $24 Million
Jacob & Co. Billionaire Watch – $18 Million
Paul Newman’s Rolex Daytona – $17.8 Million
Patek Philippe Ref. 1518 in Stainless Steel - $11.1 Million
Vacheron Constantin 57260 – $8 Million
Hublot Big Bang – $5 Million
Louis Monet Meteoris - $4.5 Million
Breguet Antique Number 2667 - $4.5 Million
Patek Philippe 5004T - $4 Million
Rolex Daytona Ref. 6263 Oyster Albino - $4 Million
Franck Muller Aeternitas Mega 4 - $2.7 Million
Lange & Söhne Grand Complication - $2.5 Million

And once more, the list can go on…

Are there any industries that have peaked your interest? Have you noticed anything worth adding to our list? Are you planning on making an investment? Let us know in the comments below!

Further Reading

Investing In Colored Diamonds in 2021…And What Else?

Investing in Colored Diamonds