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Why investments in coloured diamonds skyrocketed

Investors that have been seeking more long-term secure placements, have slowly shifted their interest toward a different type of moveable hard asset that was previously only really considered and to some extent reserved to wealthy collectors: diamonds, and more recently, investments in coloured diamonds.

  • What is causing investors to invest in diamonds
  • Investing in diamonds in numbers

What is causing investors to invest in diamonds

There are several reasons that could explain why more and more investors are turning to diamonds in the past years, ranging from the protection they offer against inflation to their prestige, the low maintenance costs and the fact that they are bankruptcy proof. There is also the fact that investors, who initially invested in diamonds on behalf of their wealthy clients, are starting to invest individually or with partners in diamonds themselves.

But one main aspect that has made investments in coloured diamonds even more attractive is the soaring record breaking prices fancy coloured diamonds have been fetching at auctions these past years.

For instance, in May 2016 the “Oppenheimer Blue”, an incredible 14.62-carat blue diamond, was auctioned at $57.5 million.

Then on 4th of April 2017, the stunning Pink Star Diamond sold for $71.2 million, making it then the most expensive diamond in the world. To top this off, this 59.60ct Fancy Vivid pink diamond is the largest Internally Flawless diamond known.

Investing in diamonds in numbers

According to the Fancy Color Research Foundation, the price of pink diamonds has increased 180% in the past year and is now at a record high. Blue and yellow diamonds are up by around 70% and 90%, respectively.

Then, according to the 2017 Wealth Report published by Knight Frank in London, which outlines the trends regarding luxury spending, the investment drivers and the objects of desire of 2017,the overall investments in coloured diamonds have risen with 122% since 2016, which is considerably high.

This again is proof that your wish to eventually make investments in coloured diamonds or to extend your current portfolio is certainly the best thing to do in 2017.

BAUNAT has proven experience in diamond investments, it has a beautiful selection of coloured diamonds to match all taste and they have an experience team of experts that will be able to fully support you in the investment process.

Author: Naomi Howard
Source: BAUNAT

This article is not a recommendation by BAUNAT DIAMONDS or the writer to invest in diamonds. BAUNAT DIAMONDS makes no representations or warranties as to the accuracy or timeliness of the information contained herein. Investing in diamonds is not without risk. All risks should be considered by the investor prior to investing.

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