Sep 15, 2016
Why women love investing in Natural Fancy Color Diamonds.
By Nicole Snitman, Guildhall Diamonds Inc., GIA,DG, AJP
What do famous celebrities, socialites, and Nancy M., a business woman in downtown Toronto all have in common?
They all invest in, collect and wear Natural Fancy Color Diamonds!
Natural Fancy Color Diamonds are truly a miracle of nature. Formed through the most arduous physical conditions in nature millions of years ago to finding their way into the hands of cutters and polishers who transform these rare rocks into into stunning diamonds in an array of gorgeous colors. These precious stones are so rare that only 1 in 10,000 rough diamonds will be a natural fancy color diamond – and from these, only a fraction will be considered investment grade color diamonds. This is what is so exciting from an investment perspective. This is because the rarer the diamond, the more value it will have. Though these diamonds have been around for thousands of years, the idea of investing in color diamonds is a relatively new concept for the majority of north americans. The physical
This well-kept investment secret has become a go-to asset for the financially savvy for years. And, with the recent increase in celebrities wearing color diamonds on red carpets, interest in these rare diamonds has soared, along with their prices. Appealing to both men and women alike, it is the female perspective that really lends itself to the investment side of color diamonds.
When it comes to investing, women, are generally more risk-averse, and have historically tended to shy away from stock market investments, preferring hard assets such as real estate, GIC’s, RRSPs, bonds and cash in the bank. Since color diamonds are a hard asset and women intrinsically understand the value and appreciate the immense beauty they possess, it makes sense that women would gravitate towards this asset class. However, there has not been mass awareness of this investment until recently. As women become more financially independent and aware, coupled with the rise in awareness about color diamonds, women have come to realize that natural fancy color diamonds whether loose, or set into beautiful jewelry are actually the perfect investment vehicle.
Color diamonds are a long term, high-yield investment. An investment-grade $15,000 yellow diamond ring purchased in 2016 will be worth as much as $60,000 in ten years*.
“We have seen more and more women purchasing color diamonds, not only because of their immense beauty and rarity, but because women are more investment minded than ever before and they understand this asset as a store of wealth” says Nicole Snitman, Vice-President of Guildhall Diamonds Inc.
With a natural fancy color diamond, there is plenty of upside and it directly relates to the female perspective on investing:
Let’s take a look at the fundamental reasons that this investment is so appealing to women.
No Risk & No Volatility:
According to a poll done by TD Waterhouse in 2006, “More than three-quarters of the women surveyed (77%) believe that men and women invest differently. The differences are generally attributed to women being “less risk-tolerant” (29%), “more cautious” (10%), and having more “long-term horizon” (9%) investments.”
No other investment offers the stability that natural fancy color diamonds offer. The value of color diamonds has increased year after year and this upward momentum and industry experts expect this to continue unabated. Color diamonds do not vacillate in price likes stocks or mutual funds.
Demand for color diamonds is increasing not only in North America, but around the world, as India, China, Russia, Saudi Arabia, Dubai and Bahrain are fast becoming the world’s most important consumer markets for high end color diamond jewelry. With a finite supply of color diamonds, this demand continues to boost price increases.
Remarkable Return on Investment:
“Playing the market with retirement funds is not an option for most female investors. Staying the course over time is their pattern, and this can lead to greater returns.” – 24/7 Wall Street.com
Natural fancy color diamonds have not decreased in value since record keeping began in the 1970’s. Demand is soaring and 2 major mines are scheduled to close (Ekati in 2019 and Argyle in 2020), and no major new mines are scheduled to launch. The result is that prices for natural fancy color diamonds are increasing exponentially, particularly Argyle Pink diamonds at 22.5% per year. Yellow diamonds are increasing on average 12.5% per year, blues at 22.5% per year and reds, the rarest color of them all, are increasing by approximately 25% per annum.
A qualified color diamond expert can work with a client to assess the potential upside of an investment-grade diamond.
90% of women feel financially insecure, despite controlling more wealth, having more education and being more involved with financial decisions. “The Emerging Profile of Women Investors” 2008
A natural fancy color diamond is an easy, worry-free investment. Once purchased, it can be stored in a safe or safety deposit box. It requires no maintenance.
Enjoy Your Investment:
The “female economy” – representing $5 trillion or more of incremental spending by women over the next several years – is larger than the commercial potential represented by the growth of the consumer economies of India and China, and bigger than any country’s bailout package. Women Want More The Boston Consulting Group Global Inquiry into Women and Consumerism
Instead of storing your diamond in a safety deposit box, you may consider having your color diamond set in a one of a kind piece of jewelry, to be worn and enjoyed while it is growing in value.
Imagine an investment where there is absolutely no paperwork to fill out, no monthly fees, and no commission, no fees, no interest payments, no tax liability and no renewal fees.
This investment is totally portable. Whether you are wearing your investment diamond or have it tucked away, you can put it in your pocket and literally be carrying a million dollars and no one will know.
A kiss on the hand may be quite continental, / But diamonds are a girl’s best friend. / A kiss may be grand, but it won’t pay the rental on your humble flat. / Or help you at the automat. / Men grow cold as girls grow old, and we all lose our charm in the end. / But square-cut or pear-shaped, these rocks won’t lose their shape. / Diamonds are a girl’s best friend. – Marilyn Monroe’s character Lorelie Lee in Gentlemen Prefer Blondes
A Diamond is a Girl’s Best Friend:
Women intrinsically appreciate the exquisite beauty of a diamond and take great pride in wearing and collecting them. They speak to a sense of wonderment about the way light catches each facet and reflects back, creating a desire to own it, wear it and cherish it. Why not invest in the very thing that attracts us so, knowing that it will serve us so well over the years?
What better investment for a woman than a rare and beautiful natural fancy color diamond?
Once you have decided to add a color diamond to your portfolio, it is important to ensure that you are dealing with a knowledgeable and reputable dealer. At Guildhall Diamonds Inc., we have a certified GIA (Gemological Institute of America) Graduate on staff and we are also members of the NCDIA (Natural Color Diamond Association). We will guide you through your purchase, whether you are a first time diamond investor or if whether you are already a diamond connoisseur.
We have an exquisite collection of diamonds to choose from at every budget. We helped Nancy M. from Toronto get into her first investment diamond and she couldn’t be happier.
“Guildhall really made it easy to select a color diamond. They were very patient and I learned a lot about diamonds in the process. I know I got a really good price and an incredibly beautiful diamond. Although this is a starter investment, I can see myself collecting a few more color diamonds from Guildhall down the road”.
Now it’s your turn! Speak to a Guildhall representative today to learn how you can add a natural fancy color diamond to your portfolio.
For more information on Natural Fancy Color Diamonds contact Guildhall Diamonds Inc. www.guildhalldiamonds.com or toll free 1-866-274-9570
|Note: Rates are based on collected data from auction houses, dealers, wholesalers and independent appraisals. These R.O.I. prices are based on the carat weight, cut, color and clarity of the stones.
This document and the content it describes are proprietary information of Guildhall Diamond Inc. (GDI)
Disclaimer: The opinions expressed herein are the opinions of Guildhall Diamonds Inc. We are not a financial institution and do not constitute investment advice. This document is not intended to provide specific individual advice including, without limitation, investment, financial, legal, accounting or tax information or advice. Please contact your own professional advisor on your specific situation.