The Value of Colour Diamonds
Why Colour Diamonds
Traditional investment markets fluctuate constantly, with values skyrocketing one day, only to crash the next. For more than 30 years of tracking, natural colour diamonds have climbed on average, by up to 30% annually. Turbulent markets don't break this upwardly mobile market, offering security, consistency, and luxury, all in one beautiful package.
As the most portable, confidential and concentrated form of wealth on the planet, natural colour diamonds represent the safest, most tangible way to diversify your portfolio without treading into the volatility of typical investing.
Supply and Demand
The value of any commodity is typically dictated by a supply and demand ratio. Over saturation of a product, limits demand, and lowers valuations. Limited supply, allows for greater demand, and better prices. Diminishing supply of a commodity that is incredibly rare, such as natural colour diamonds, offers up the opportunity for increasing demand, while supplies decrease.
Annually, for every 10,000 carats of diamonds mined, only 1-2 carats will represent natural colour diamonds. That, coupled with the lack of new colour diamond sources being discovered is driving valuations up, and demand along with it.
Natural colour diamonds value is ultimately decided by what a buyer will pay through auctions, private sales, and other sources, making this commodity more similar to collectibles such as fine art, rather than stocks and bonds.
The value of natural colour diamonds is ultimately determined by what a willing buyer will pay to a willing seller each dealing at arm's length through private sales, auctions and other sources. It should be noted that natural colour diamonds are typically incorporated into custom designed jewellery creations to create even more value and marketability.
Hard Asset Value
During inflation, hard asset valuations typically rise at much higher than normal rates. This increased valuation, combined with the diminishing supply and ever-developing demand in the marketplace for natural colour diamonds, allows for significant price increases in the near future. When coupled with the consistency of this market, having never decreased in value in over 30 years of tracking, natural fancy colour diamonds represent a tremendous hedge against the inflation and economic fluctuations of the day.
LET'S TALK ABOUT IT
Get started on the path of collecting and investing in Natural Colour Diamonds today. Contact us for more information on how we can create a portfolio or collection that is perfect for you.
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