Colored diamonds are investment tools to have in a portfolio due to their rarity, demand and appreciation in value.
NEW YORK, UNITED STATES, October 20, 2021 /EINPresswire.com/ – Colored diamonds are precious stones that form over millions of years in the ground. When they are recovered, they remain a non-renewable, scarce, highly demanded resource whose value appreciates over time, making them the investment vehicles par excellence.
The valuation of colored diamonds begins with their rarity. Red diamonds, for example, are rare to find such that “over a 30 year period from 1957 to 1987 there was no mention of a published GIA lab report for a diamond with ‘red'” , reports the GIA. One carat of colored diamond is discovered for every 100,000 carats of colorless diamond found.
As rare as they are, few mines in the world produce colored diamonds. The Argyle mine which produced 90 percent of the most expensive pink diamonds in the world was closed in 2020. This closure has increased the scarcity of colored diamonds in the world. As the rarity increases, the appreciation of these desired gems increases.
What also increases the appreciation or valuation is the demand due to the emotional connection with colored diamonds. A 2020 Customer Sentiment Survey by Bains and Company found that “Consumers in the United States, China and India, 60% to 70% of respondents believe diamonds are an essential part of engagement.” report further explains that 75 to 80% of these consumers plan to spend more or as much on diamond jewelry after the pandemic.
While consumers have the option of purchasing colored diamonds on jewelry, ordinary investors may not have direct access. Many calls for tenders are conducted in complete confidentiality and are only open to connected investors by invitation. This secret creates an exceptional appeal which ultimately adds to the valuation of colored diamonds.
In changing economic climates, “colored diamonds appreciate even in times of turbulence amidst the instability of the global economy,” says Yuri Okoyemov, vice president of Alrosa, the world’s largest diamond mining company. in the world in volume.
Followed by Knight Frank as one of the top 10 luxury investment assets with general jewelry, art, wine, watches and cars, the value of colored diamonds has appreciated by 70% over the course of over the past decade or about 12% each year, according to The 2018 Knight Frank Luxury Investment Index.
In 2018, an 18.96-carat rectangular fancy bright pink diamond, The Pink Legacy, sold for US $ 50.4 million at Christie’s Geneva, setting a record price per carat for a pink diamond sold at auction, at 2 , US $ 6 million. In 2017, The Pink Star, a fancy vivid pink diamond weighing 59.60 carats, fetched $ 71.2 million at a Sotheby’s auction in Hong Kong. It retained the title of the most expensive pink diamond in the world. Also in 2017, Christie’s Hong Kong sold The Pink Promise, a 14.93-carat oval-shaped fancy hot pink diamond, for US $ 32.5 million, or US $ 2.2 million per carat.
In conclusion, colored diamonds as an investment vehicle will shine as this hard investment asset is scarce, consumers have an emotional connection to own or share as a gift. There are few mines to be recovered and brought to market in order to meet demand. As a result, the market value of available colored diamonds continues to appreciate.
This appreciation will continue in the future, thus making colored diamonds shine as possible investment vehicles.
As with any investment, it is the investor’s responsibility to seek expert advice or exercise due diligence. There are vast resources on natural colored red diamonds available to the public. However, the president of Premier Diamond Group (North America) Ltd, Mr. David Metcalfe is available for consultation. He is a pioneer in marking natural colored diamonds as a hedge against excessive market volatility caused by speculation and government excess credit. For more information, go http://premierdiamondltd.com/contact-us/.
About Premier Diamond Group (North America) Ltd
Premier Diamond Group specializes in buying and selling naturally colored diamonds for the purposes of wealth accumulation and estate planning. The company is a member of the International Colored Gemstone Association and the United States Chamber of Commerce.
For more information, visit http://premierdiamondltd.com/.
Premier Diamond Group (North America) Ltd.
Skyway Business Park,
170 Attwell Drive, Suite 100
Toronto, Ontario M9W 5Z5
This report is based on information available to the public. The information and all statistical data contained in this document has been obtained from sources which we believe reliable, but we make no representation that they are accurate or complete and should not be relied upon as such. The material contained in this document is for informational purposes only.
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Premier Diamond Group (North America) Ltd
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