Are coloured diamonds a good investment?

  • Diamonds have proved to be a stable and thus good investment.
  • Of course, coloured diamonds are much rarer than colourless diamonds.
  • The interest in coloured diamonds is therefore larger than the current supply.

In the past, gold, silver and precious stones were used as a payment method for goods and services. Only in the 13th century, paper money was introduced in Europe, but real banknotes only appeared in the 17th century. Today, money is nothing more than an electronic number. Therefore, many wonder what our money is really worth. Isn’t it smarter to be prepared for dark economic times by investing in something tangible?

Money in other forms

Throughout the years, diamonds have proved to be a rather stable and thus good investment. When talking about diamonds, people immediately think of white or colourless precious stones. However, you can buy diamonds in every possible colour. The diamond’s colour also has an influence on the value of the diamond. Their market value is determined by the prices during an auction. The rarity of the colour makes such diamonds a good investment.

Collecting coloured diamonds

Natural coloured diamonds are much rarer than colourless diamonds. Also, it is likely that the Argyle mine in Australia, the main mine for the production of pink diamonds, will close in 2018. Collecting coloured diamonds is thus a very interesting occupation in itself, apart from the fact that it is a good investment. Worldwide, more and more investment groups focus on coloured diamonds for the diversification of their investment portfolio. That coloured diamonds are a good investment, is clear from the fact that the interest is larger than the supply.

Selling coloured diamonds

Precious stones are a portable form of wealth. If you bought them because they are a good investment, naturally, one day you want to resell them and enjoy an other form of wealth. There are different possibilities, such as to resell them directly, via an auction house or to donate them to a museum. In general, people opt for the auction house. There, diamonds are viewable by many potential buyers. And the offered prices can be enormous. In London, for example, a lot with a sapphire and a diamond ring were sold for 458 000 USD, while it was valued at 96 000 USD.

Coloured diamonds are thus a good investment, on condition that you have enough knowledge or you enjoy good guidance. Therefore, contact our BAUNAT DIAMONDS’ experts if you want to invest in diamonds.  

Author: Inge De Wee
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.


Most popular