Blue investment diamonds, the love of investors?

  • The return of blue investment diamonds increased by nearly 600 between 2002 and 2015.
  • What does the future hold?

With frequent media attention for blue diamonds and spectacular auctions with evocative record prices, it seems like blue diamonds are found worldwide on a regular basis, but nothing is less true. Blue investment diamonds remain very rare.

We all know the Blue Moon, the famous 12.03 carat Fancy Vivid Blue diamond. This stone was the only blue diamond which price was more than 4 million dollars per carat. The Oppenheimer blue diamond, a 14.62 carat Fancy Vivid Blue diamond, is currently the world’s most expensive diamond ever. However, there are also affordable blue diamonds, but are these diamonds suitable for investment diamonds?

Return 2002-2015

Let’s have a look at the prices of Fancy Vivid Blue diamonds in the last 10 to 15 years. In 2002, the price of such a blue diamond was 126 644 dollars per carat. By 2015, it had risen to 878 378 dollars per carat. This means, these diamonds had a return of 593,63 % in a period of 14 years. This is a higher return than other raw materials such as gold, oil and platinum. It’s even a better return than the Dow Jones and NASDAQ over the same period.

What does the future hold?

Will the return on blue investment diamonds increase or stay the same? Or will prices drop? Nobody knows 100% sure what the future will bring, but the following two facts will happen. On the one hand, there will be less blue diamonds on the market, but on the other hand, there is built more wealth each year and whoever has more funds is willing to invest in rare goods, including diamonds. Eventually, the demand will exceed the supply which will lead to prices higher than 1 million dollars per carat, as the biggest part of the transactions is done private. Auction houses, like Christie’s and Sotheby’s, only represent a small part of the number of transactions.

BAUNAT DIAMONDS advises potential investors and assists them with the search for suitable investment diamonds. If you want to learn more about investing in blue or colourless diamonds, our team of experienced experts is available.

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Author: San Meuleman

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