The Fundamentals

Of the millions of diamonds mined each year, only .001% can qualify as fancy colors.

Russel Shor. GIA Senior Industry Analyst

The Fundamentals

In a world of economic uncertainty, Natural Fancy Color Diamonds have become an increasingly prevalent choice among savvy investors looking to grow and protect their hard-earned capital. The increase in appeal of these beautiful and rare loose color diamonds lies in the key fundamentals of color diamond investing: rarity, supply, proven track record and unprecedented investor demand.

Rarity

The appeal in owning a Natural Fancy Color Diamond goes well beyond its unmistakable beauty. The consistent increase in value for color diamonds is rooted in rarity as Natural Fancy Color Diamonds are among the rarest gems in the world. It is generally understood that for every 10,000 carats of white there is only one color. Yet even among the most distinctive class of diamond there is a hierarchy.
Russell Shor, senior industry analyst at GIA, states, “Of the millions of diamonds mined each year, only .001% can qualify as fancy colors… and only a handful can achieve the top grades of intense and vivid. Even a smaller percent are larger than one carat; let alone five carats.”

Investment-grade loose color diamonds are the ultimate in rarity. While no official data is available, mining experts estimate to find a one-carat vivid, internally flawless color diamond would literally be one in a million. Not only is there an extremely finite amount of quality color diamonds above ground, but also mine production continues to decline. When combined with the general public’s appreciation and zest for these unique stones, you can begin to sense why prices will continue to rise for many years to come.

Supply

It takes billions of years for a diamond to form and so the only supply of color diamonds available is what Mother Nature has already provided. With older mines closing and no new mines reportedly coming online, supply is in decline.

THE FUNDAMANTALS

Argyle Diamond Mine, Perth, Australia

It is this extreme rarity combined with unparalleled beauty that has been a strong reason for color diamond appeal as investment.

Investor Demand

Diamond collectors and investors alike continue to witness unprecedented growth in this market. Premier auction houses such as Christie’s and Sotheby’s are selling record numbers of color diamonds, often far higher than their reserve prices. As knowledge about color diamonds increases, demand for loose color diamonds is on the rise around the globe, particularly in Asia.

Concentrated Wealth

Furthering the appeal of color diamonds is that they are the most compact form of wealth in the world today. Literally millions of dollars of diamonds can sit in the palm of your hand and be easily transported anywhere in the world.