10 Reasons Why Natural Fancy Color Diamonds Are A Wise Investment

When looking for a solid investment many people turn to commodities such as gold, silver or natural gas. Many people however are not aware that diamonds of all sorts, see: Investing In Type IIa Diamonds and Diamonds as an Investment , are worth taking a look into. In this article we give some of the main reasons why investing in fancy color diamonds is a good investment.

Given the closure of many financial institutions, the devaluation of many different currencies and the general lag in world finance, investors are looking for a solid form of investments, that is hard to damage and easy to move.

Clever and colorful diamond investments

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Why Investing In A Natural Fancy Color Diamond Is A Good Idea

1. Colored Diamonds are extremely durable; they are the hardest substance known to man. They are not affected by changing temperature, humidity or shocks creating an asset that can be stored or transported without potentially damaging the asset.
2. Natural fancy Colored Diamonds are the most concentrated form of wealth on the planet. One million dollars of diamonds can fit into your pocket and weigh less than a gram, where a million dollars of gold would weigh close to 35 pounds.
3. Colored Diamonds are easy to store and transport.
4. Colored Diamonds can easily be stored in a safety deposit box, or set into jewelry and be enjoyed and easily transported anywhere in the world.
5. Naturally Colored Diamonds can be sold anywhere and in any currency.
6. Colored Diamonds are exceptionally rare. For every 1 carat of colored diamonds, 10,000 carats of white diamonds are mined. Of the production of color diamonds mined, less than 1% of color diamond production would be considered investment grade.
7. Colored Diamonds are becoming more difficult to procure. Older mines are shutting down due to less and less rough diamonds mined and fewer new mines are opening. The major producer of pink colored diamonds has predicted that the Argyle Mine in Australia will be closing in 2018, due to the ending of diamond production in the mine. This fact alone means that there is a limited amount to invest in and that means that the value of fancy colored diamonds will only go up.
8. Natural Colored Diamonds have a history of steady appreciation. In 2008, when gold fell 30% and white diamonds dropped 20%, natural fancy color diamonds did not fall rather had a small rise (3-4%) in appreciation. In the past 30 years, fancy color diamonds have never depreciated in value.
9. Auction house records show that many important diamonds have doubled in value every 5 years. Most investors consider natural color diamonds as a medium to long-term investment. Real appreciation of natural fancy color diamonds develops over time. It is suggested to let this hard asset to appreciate for 4 – 6 years before reselling.

Four Facts To Take In Consideration

When thinking about investing in fancy color diamonds, it is likely to be profitable when the four following facts are taken into consideration:

1. The stone must kept long enough. Diamond prices only improve over time. Wear it and enjoy it in the meantime. Even pass it to your kids, if there is no necessity to sell.


2. The larger the diamond—the better, the reason behind this is that is because most diamonds are found in small fractions, rather than big solid ones, thus making them rarer. So when you come across a diamond weighing more than 5 carats, it is already considered “rare”, regardless what its color grade is.
   Remember, a 2-carat diamond costs more than 2 1-carat diamonds. So even your budget constrains you to purchase to light yellow or light pink, it can still be highly valuable when the carat weight is ample.


3. Chances to find pure red, pink or blue diamonds are so little that when one such diamond is found, it carries great value due to its scarcity. Most colored diamonds are found with underlying tones. There are 27 standard hue names that GIA normally uses, but the lab also recognizes the 270 variations that could appear when the modifiers are counted in.
   Colored diamonds’ evaluation is different from the colorless diamonds. The GIA uses terms such as Faint, Very Light, Light, Fancy Light, Fancy, Fancy Dark, Fancy Intense, Fancy Deep and Fancy Vivid to describe the intensity of color in the diamonds, with Fancy Vivid being the most desirable.


4. The concept of investing in Fancy Colored Diamonds as a commodity is still a new idea in the mind of most investors and it may not be easy to introduce. But with the above facts it seems to be a very solid investment with very good potential.

CaratsDirect2U offers a large selection of natural fancy color diamonds certified and not certified.

Many of our diamonds are accompanied with a GIA certificate. We stock many popular shapes such as: Round, Princess, Cushion, Emerald, Radiant, Asscher and Oval. Upon request we can mount the diamonds in one of our rings or pendants.

If you have any questions about investing in fancy color loose diamonds, please feel free to contact our expert jewelers at 1-800-557-7095 or [email protected].