How popular is investing in coloured diamonds around the world?

  • Where is investing in coloured diamonds most on the rise?
  • Which types of fancy coloured diamonds are most often sold?
  • Which advantages do fancy colours bring to the table?

You already know investing in coloured diamonds is a good investment, but certain places in the world have particularly taken an interest in the fancy coloured stones. Where are coloured diamond investment most visibly on the rise? Which types of coloured diamonds are sold most often?

Where is investing in coloured diamonds most on the rise?

Although investing in coloured diamonds is mostly on the rise in the BRIC-countries, the largest coloured diamond consumers are not only growing economies. Asia in particular saw strong growth over the past few months, and so has Russia. However, coloured diamond consumption has also risen in the USA, a country which has long since been the main diamond consumer. The rise in coloured diamond consumption can therefore be said to be less related to economic growth, and more to coloured diamond supply.

Coloured diamonds have always been far rarer than the colourless variety, with only 0.1% of all diamonds annually mined having a strong enough hue to be classified as coloured. Moreover, one of the most prolific coloured diamond mines is the Australian Argyle, birthplace of the Argyle red diamond, which is set to close in 2020.

Which types of fancy coloured diamonds are most often sold?

The exquisite rarity of coloured diamonds has a strong influence on their eventual price. The highest quality stones are most often sold at high-end diamond auctions only open to the highest global bidders. The rarer the colour and hue, the higher the price. Because of their rarity, most coloured diamonds of high quality in today’s market are preowned diamonds. They often become even more valuable because of the status of their previous owner, which is often the case with priceless famous diamonds. These famous gems, however, often break the optimal ratio between price and quality, making them less suited for investments. Preowned diamonds from more anonymous investors, however, are as valuable as diamonds straight from the source.

The rarest colour diamonds are red ones, the most common are different hues of yellow and brown. Although the latter are the most common among coloured diamonds, they are still far rarer than the colourless variety.

Which advantages do fancy colours bring to the table?

Since they are so rare, investing in coloured diamonds is highly lucrative. They require a higher starting capital than colourless diamonds, but they also appreciate in value more and quicker. Moreover, global demand continuously rises, causing an exponential increase in the already soaring prices. Coloured diamonds are one of the most lucrative ways of adding a large capital injection to your diverse portfolio, especially when you have already invested in diamonds before.

How does investing in coloured diamonds fit into my portfolio? What type of diamond best suits me? Contact the diamond investment experts at BAUNAT DIAMONDS for your perfect gem.

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.

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