Investment Diamonds: Everything You Need to Know
YOU’VE DECIDED THAT DIAMOND INVESTMENT IS RIGHT FOR YOU. NOW COMES THE CRUCIAL STEP OF CHOOSING WHICH DIAMONDS TO INVEST IN. LET’S EXAMINE WHAT FACTORS YOU SHOULD TAKE INTO ACCOUNT WHEN PURCHASING YOUR INVESTMENT DIAMOND.
We also consider ourselves an alternative investment firm trading and investing in tangible assets to diversify your portfolio. ( With the skills and knowledge our owner has in not only diamonds but a all-around Master in Business (literally!) Graduating from the 3rd best Professional MBA program of his time he has a well versed knowledge on how to maximize your portfolio! )
Our mission is to work with our clients within their needs to help bring them the highest return on the investment grade diamonds we purchase, and manage for them.
We have a strategy that has been proven successful in similar markets and we will work with our clients and tailor each investment to any needs and taste wanted or required by those investing with us. Our promise is to do this by:
Quality Assurance that your investments are being purchased and managed by qualified/vetted professionals from the industry that carry your best interest in mind
Transparency in the way we deal with our clientele and how we manage their assets, buying only the best diamonds from the most trusted sources.
Low Transaction Cost due to our networks and ability to manage your assets effectively and efficiently
Liquidity guaranteed with the proper notification your investment can be turned into cash fairly quick with very little risk in losing much off your asset.
With these guarantees Liberty Diamond Capital will stick by our clients throughout this whole process, making it a smooth and simple investment into a greater future.
DIAMONDS AS AN INVESTMENT: THE 6 KEY FACTORS
Rarity is the most important principle when considering investing in colored diamonds. The rarer the stone is, the higher the return potential on it will be. The rarity factor will be addressed for every upcoming factor for consideration.
FANCY COLORED DIAMONDS OR COLORLESS DIAMONDS?
Colorless diamonds are found in nature 1000x more often than naturally colored diamonds, making colored diamonds considerably rarer and much more valuable.
We will continue to discover what makes a colored diamond more or less rare, thereby making it more or less valuable.
Color is one of the factors with the most influence on the price of a fancy colored diamond. Although it is true that all fancy colored diamond are much more rare than colorless diamonds, there is also a big difference between the rarity of some fancy colors compared to others. For example, black, brown and yellow diamonds are found much more frequently in nature than blue, red and orange diamonds.
Are pink diamonds a good investment? and what about blue diamond investments?
Colored diamonds come in different intensities of color, ranging from faint to vivid. A stone with vivid intensity will be the most valuable, since diamonds with strong color are found very rarely in nature. The stronger the color, the rarer the diamond. When Considering colored diamonds as an investment though, you need to keep in mind, that a less rare (but still quite rare) light or mid colored diamond will be relatively more affordable.
Simply put, larger stones are much rarer than smaller stones. As the carat weight of a diamond goes up, so will the value and price.
FANCY DIAMOND’S SHAPE
There are certain shapes that are considered more desirable than others. Rounds, princess cuts and emerald cuts have the highest value. It is much harder to achieve the best results for the color of the diamond(learn more about how diamond cut relates to the color) in those particular shapes, therefore a properly cut round, princess or emerald cut colored diamond will not be found very often, making one very valuable. Easier cuts for colored diamonds will be slightly less valuable.
COLORED DIAMONDS INVESTMENT TIP
Aside from considering all of the above factors individually, it is always important to consider how these factors interplay for a given fancy colored diamond. For example, a stone with the rarest shape but a more common color will still be less valuable than a stone with a more typical shape and a very rare color. A very large diamond of a relatively common color may be worth more than a very small diamond with a very rare color, or not.
As you can see, every single fancy colored diamond is unique and the consideration of characteristics for each one is unique in order to determine its value. For this reason, we highly recommend doing the extensive research yourself and then consulting an expert before investing in a fancy colored diamond.
STRENGTHS OF DIAMOND INVESTMENTS
Historically, diamonds have served as a way to preserve wealth and pass it along to future generations. The idea of using diamonds not just as wealth preservation, but also as a tool for wealth expansion is relatively new. The topic of diamond investment is a controversial one. You can find numerous articles both for and against diamond investment. At the end of the day, it is up to each individual investor to decide what works best for them. In order to have a better understanding of the concept of investment in diamonds, it is necessary to see the full picture, which includes its strengths and weaknesses.
STRENGTHS: THE 4PS
The four Cs of diamond grading is widely recognized and are known facts, but we doubt many of you have heard of the 4Ps of diamond investment. The 4Ps of diamond investment are Portability, Privacy, Price Performance, and Preservation of Wealth. While not all the benefits of diamond investment are covered by the 4Ps, they do represent its main qualities.
One undeniable advantage of diamonds is their size to value ratio. Diamonds have the most concentrated value out of all natural resources and other assets. Several millions of dollars can be the size of one small fancy colored stone. No other asset can stand up to diamonds in that respect. The outcome of a diamond’s relatively small size is that diamonds are extremely portable, one of their greatest advantages. As a result of their extremely concentrated value and portability, diamonds qualify as the best emergency funding. They can be easily transported from any location to any location. All of your wealth can fit in your pocket, become a piece of exquisite jewelry or be stored in a deposit box anywhere in the world.
The privacy involved with diamond investment is another aspect that can be very attractive to certain investors. Diamonds provide a completely private investment for the owner because they do not require any form of registration or licensing, as many other assets do. There are no government records or any other government intrusions connected to diamond ownership. These factors, in addition to their small size, make diamonds easily concealable “from the all-seeing eye.”
Diamonds have shown impressive price appreciation throughout history, and even more so in recent years. The rarity of natural colored diamonds, the decreasing supply and substantially increasing demand of colored stones cause prices to soar at an unprecedented rate. The potential for colored diamonds investment is phenomenal. For example, fancy intense pinks have shown more than 400% appreciation in less than ten years. How much the price of an individual colored diamond will appreciate is largely based on the rarity and color of the stone. Certain colored diamonds appreciate faster than the others.
It requires deep market knowledge to understand the factors behind the price performance of certain stones and knowing which stones should have higher investment potential than others.
PRESERVATION OF WEALTH
With the current turmoil of financial markets, wealth preservation can become a more important aspect of investment than high returns. In a world where currencies default, markets crash and “bubbles” burst, to be able to preserve your wealth might become the number one priority. Your wealth preservation is guaranteed because of the aforementioned advantages of diamond investment. Diamonds have never fallen out of favor; they keep their value, and help to preserve it for the future generations. Diamonds are tangible assets that are largely not influenced by any economic or political changes in the world. The hardest mineral on earth is here to help you keep your wealth undivided and to pass it on.
Bitton Diamonds is North Dallas’ premier jewelry store & source for diamonds and gemstones. With years of expertise in the fine jewelry and gemstone industry, you can expect the highest quality service by our trained staff.
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