Why Do the Super-Rich Favor Investing in Colored Diamonds?

In recent years, the super-rich have shown a much stronger preference for investing in colored diamonds. Why is that? Let’s read the article below to understand it more clearly.

Colored diamond prices are rising steadily – the super-rich are becoming increasingly fond of them

You may not know this: in November 2015, at an auction  in Geneva, the 12.03-carat Blue Moon was sold for nearly 50 million dollars, the only diamond ever sold for more than 4 million USD / carat. – In the spring of 2016, a famous Geneva-based fund manager bought a very rare vividly orange diamond for 1 million USD / carat.

In May 2016, a 14.62-carat blue diamond was sold for 57.5 ​​million USD at another auction in Geneva, becoming the most expensive diamond in the world ever purchased at auction.

This proves that over 2 consecutive years, the price of colored diamonds rose rapidly and may continue to increase. This opens up a positive signal for investors in this type of diamond.

In this article, we will explore recent trends reflecting the growing popularity of investments in colored diamonds as well as what they mean for future colored diamond investments.

Colored diamonds – value surges every year

Diamonds with unusual colors are extremely rare, even more so than white or colorless diamonds. According to GIA, only 1 carat of colored diamond is found for every 100,000 carats of colorless diamonds mined.

This shows that colored diamonds are truly very rare; for example, many people long to own a red diamond, but it appears extremely rarely on the market. During the period from 1957 to 1987, GIA’s laboratory did not encounter any colored diamonds.

Over the past 10 years, the value of colored diamonds has been bid increasingly higher compared to the initial level, and colored diamond prices have also risen by around 122%.

A colored diamond becomes an extremely rare gemstone when it reaches the higher end of the spectrum. Specifically, pink diamonds increased by up to 180%. For lower-grade stones in blue and yellow, the price is more affordable, increasing only about 70% and 90% respectively over the same period.

Because diamonds are a non-renewable resource, a precious mineral formed through millions of years of creation, the availability of diamonds on the market depends on existing diamond mines, which are being depleted much faster than they can be replenished.

According to diamond investment forecasts, valuations are expected to continue rising as diamond production will decline significantly over the next 20 years.

The diamond market is transforming and seeing the participation of many elite investors

Today’s market has changed, and many ultra-wealthy investors have rushed to invest in colored diamonds. It is also because of this that colored diamonds have suddenly grown in value. In addition, ultra-wealthy investors are also looking to the value signal of colored diamonds and the relative stability of these “recession-proof investments” that bring significant returns with low risk.

Investors, including specialists and investment funds acting on behalf of ultra-wealthy clients, also view colored diamonds as an alternative investment. This new group of investors has significantly expanded the diamond market, while collectors and rare gemstone connoisseurs are often the ones providing capital and standing in the background for support.

The allure of colored diamonds and the society of those who collect them

A rare colored diamond often has a little-known secret behind it, and this stimulates the curiosity of colored diamond enthusiasts, who wish to conquer and discover them.

At auctions, only 15% of colored diamonds are put up for sale. At many mines, the finest colored diamonds, often only about 50 stones each year, are sold through discreet tenders that not everyone can participate in or even know about.

To add to the mysterious atmosphere surrounding these transactions, investors are allowed to inspect each stone for sale in a hidden, windowless room, reinforcing the secretive atmosphere of an exclusive society.

Diamonds are an extremely discreet investment: transactions do not need to be registered with government agencies or financial institutions. Ownership can even remain anonymous if the investor so wishes.

In addition, unusually colored diamonds are very easy to transport individually. Diamonds have a high size-to-value ratio: because they are very small, they can be transported easily, making product transfer more convenient.

However, investing in diamonds is a complex decision. Learning more about each colored diamond in our articles will help you gain clearer insights into this type of diamond.

If you have decided to join the club of elite investors seeking new and luxurious investments to affirm your class, take one more step toward your priceless investment with Jemmia.

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– Jemmia Diamond’s GIA diamonds have clear origins and come with international GIA certification.

– 100% are new, unused diamonds. Because Jemmia Diamond always wishes to bring happiness, good luck, and the greatest value to customers by selling new, unused diamonds.

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