With so many socio-economic upheavals, great speculation has risen regarding the safest asset choice for investors. In this post, Arpège Diamonds compares natural colored diamond investments to 3, more traditional, investment alternatives. Let's see how they compare.
Colored diamonds have been admired for their beauty and value for hundreds of years. Within the last few decades, many types of colored diamonds have been growing in value, but one hue of colored diamond has outpaced all others. Since 2005, pink diamond price has increased by an average of 15% per year.
The alternative financial markets are typically comprised of tangible goods. Types of alternative investments include real estate, art, antique furniture, fine wines, classic cars, or even rare baseball cards and comics. While these assets may be illiquid, they are considered to hold exceptional quality and value over the long-term. One of the rarest and most sought after investments in alternative investing is that of high quality gemstones, and especially the area concerned with the acquisition of naturally colored diamonds.
Topics: Alternative Investments
As investors, you are constantly on the lookout for assets that show the greatest stability and potential for high returns. With the price of diamonds increasing exponentially in the last 2 decades, is there opportunity in investing in these colored stones? Can their prices rise even higher? And if yes, how much higher can they get?
In this article we will be looking at:
- How diamond rarity translates to value
- What we can learn about market demand and the industry by examining the Argyle Tender
- Final thoughts on the future of colored diamond prices
Fancy Colored Diamonds can truly be top grade investments, and much like fine art, the more unique the piece the higher the value; especially if you have the patience to wait for the opportune moment to sell. It is then, and only then, that you can realize truly astronomical returns on your investment.
Last year, we posted an article emphasizing the difference between color modifiers and undertones and how different hues impact diamond value. If you haven’t already, check it out here.
In that article, we spent most of our time analyzing how different undertones affected pricing and possible reasons behind why they are not included in GIA reports. This time, we will be taking a closer look at color modifiers and exploring how different modifiers can affect a diamond’s value, as well as some exceptions to these rules.
2018 came and went, and while no diamond managed to break the record set by the Pink Star during 2017, there were plenty jaw dropping stones that managed to “wow” audiences and set headlines in the year that passed.
The top diamonds sold during 2018 were:
- A 50.47 Carat Colorless Diamond Ring, by Harry Winston
- The Fancy Intense Blue Diamond Ring
- The Farnese Blue Diamond
- A 50.39 Carat Colorless Diamond Ring
- A 51.71 Carat Colorless Diamond Ring
- The Pink Diamond Heart Pendant
- A 5 Carat Fancy Vivid Blue Diamond and Diamond Ring
- The Bulgary Blue Diamond Ring
- The Moussaieff Blue and Pink Diamond Necklace
- The Pink Legacy Diamond
Investments come in all types of forms. From real estate and stocks, to crude oil and gold. But did you know that another fast-growing form of investment is within the world of naturally colored diamonds?
With more and more people wanting to secure their wealth, investors have started looking towards alternative, tangible investments such as gold and fine art; but what about diamonds and especially colored diamonds?
Diamonds are one of those unique investments that can be purchased in one currency and sold in another, providing a hedge against inflation that devalues the purchasing currency. Like we’ve mentioned in previous articles, diamonds are tangible investments that are highly portable, easy to store, and of course wearable.