10 Reasons to Invest in Diamonds

In a world where markets change rapidly and the prices of goods can change from one moment to another, having a stable source of investments becomes more important. We need to do some research before we invest in a fund.

This will allow us to ensure that the fund is on a stable path and going in a good direction.

The price of diamonds fluctuates quite widely. The value of a diamond is determined by its color, clarity, cut, and carat weight. One diamond that is different from the others and has attracted a lot of attention recently is the colored diamond.

Colored diamonds are rare and can be found in many colors such as pink, blue, green, and yellow. These beautiful gems are often used as engagement rings. The market for colored diamonds has been flourishing. The demand and supply have been increasing and the prices are on the rise.

Colored diamonds are becoming one of the most sought-after gemstones because of their rarity. If you want to be a part of this investment opportunity, look no further than your nearest jeweler.

Our team has looked for plenty of information on this topic, so we decided to present you with 10 often overlooked reasons why investing in a colored diamond might be the right decision.

1. Well Established

Fancy-colored diamonds are an exciting luxury that many people are familiar with. They’re rare, beautiful, and expensive – but the rarity is what makes them prestigious. Fancy colored diamonds are recognized as prestigious items internationally.

They’ve been collected & traded by royalty for hundreds of years and now these stones are available in jewelry stores, albeit in limited numbers.

Prices have increased steadily over the years, but they still remain expensive enough that gives one a general idea of exclusivity.

2. Portability

Diamonds are a rare, precious, and symbolic gem that has many reasons to be desired. They can be put in a concealed location and moved to a new one discretely making them portable when sudden emergencies arise.

At any moment, you can ensure that your diamonds are in a safe deposit box. This allows for easy transport and storage.

Even more exciting is that you can now store your entire jewelry collection in a safety deposit box at the bank because the bank knows how important it is to protect these investments.

3. Long Term Growth

Natural fancy colored diamonds have a strong history of long-term appreciation. This is because they are rarer and more valuable than diamonds from other colors.

Plus, the demand for natural fancy colored diamonds is increasing every year. The publicly available auction prices of jewels can be a great indicator of what gems are currently most desirable.

After 2013, pink diamonds apparently became the gem to have because auctions which year after year sold the most expensive, highest quality pink diamond on record.

These examples show that natural fancy colored diamonds are in high demand and worth much more than their white counterparts, which is why the prices have risen.

4. Multi-function Asset Class

Colored diamonds are not just pretty to look at – they offer multiple functions as an investment asset. For example, one can purchase for investment purposes a 5.00-carat, Fancy Intense Yellow diamond, set it in a ring, and present it to his wife.

The fact that a wife can use and be happy about her jewelry for many years without taking any value away from the stone. This is true because wearing a diamond ring brings satisfaction in its own way and it never loses its value.

5. Value Retention

Diamonds are known for their rare and valuable qualities. It is a stone that has always had a considerable value and has been considered an instrument of rarity and wealth. With the advent of technology, diamonds have more than one way to be graded and classified. While its color or cut can be evaluated, it is diamond prices that make them the most valued of gems.

Headquartered in London, Sotheby’s & Company auctions diamonds to both private collectors as well as major jewelry manufacturers. The auction house offers jewelry appraisals, diamonds are mainly valued at the time of purchase with rare exceptions being found at auction houses where they are evaluated based on prices paid by buyers.

6. Value

Based on its availability and public desire for it, an asset’s value is determined. Most gemstones are abundantly available while diamonds are rare. Only around 0.01% of natural diamonds have a color that can be called “fancy.”

The rarity of fancy color diamonds is what gives them their value.

Diamonds are graded on a scale of D (the lowest) to Z (the highest). The rarer the diamond, the higher the grade.

Many celebrities like Anne Hathaway, Angelina Jolie, and Kim Kardashian can be seen wearing colored diamond jewelry in public which has created a spike in the demand for them.

7. Durability

Colored diamonds are tough. They are the hardest substance found, which is why they can withstand any environmental situation. For instance, they were created deep below the surface of the earth to be extraordinarily durable.

The Mohs scale is one of the most popular scales for measuring the hardness of gemstones, minerals, and other materials. It ranges from 1-10 with 1 being the softest and 10 being the hardest.

As we all know, diamonds are known to be the hardest and can scratch any other stone. This is why they are used for jewelry and as a symbol of love.

Sapphire has a hardness value of 9; it can scratch any mineral that has a 1-8 ranking, but not diamonds. A diamond is four times harder than a sapphire stone.

8. Rarity

Colored diamonds are incredibly rare and there are only a handful of places in the world where they can be found. They represent a small proportion even when they are found, but that’s because only a select few mines produce them.

Diamonds are the most coveted stones in the world, and this is because they are rare. In 1905, a diamond was unearthed that weighed 3,106 carats. In 2012, a 12.76-carat pink diamond was found in Australia that was reportedly worth millions of dollars.

Fancy Intense Violet is considered to be a rare color, and most mining companies will never even get to see it.

9. Privacy

Diamonds are one of the safest and most private assets to invest in, a popular choice among many investors. Unlike other assets such as real estate and stocks, diamonds don’t leak any personal information and can be stored at home.

The benefits are clear, unlike other options on the market, they can be easily stored for safekeeping without ever sharing the information publicly. They offer privacy and do not require reporting for tax purposes.

10. Absolutely Breathtaking

Diamonds come in all different colors and some are rarer than others. Fancy colored diamonds like red, pink, green, blue & yellow are very popular & expensive. They come in different variations and can still make anyone look classy. Everybody is fascinated by the beauty of a gemstone. The rarity of diamonds has made them an exceptional investment.

While they might not be for everyone, it’s worth looking into to diversify your portfolio and reduce the likelihood of you or your company missing out on an opportunity.

As mining technology progresses and becomes more advanced, more diamonds are recovered. However, fancy colored diamonds won’t be around forever.

Markets have periods of volatility, and it usually leads to more trading activity. In order to grow your portfolio and protect yourself from market fluctuations, a great way to make your portfolio stand out is to add some color and include a section of high-quality, colored diamond options.

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Shira Diamonds is the only TRUE diamond wholesaler open to the public. We have all types of loose diamonds, diamond studs, and custom diamond engagement rings for sale. Visit our wholesale diamonds store in Dallas or contact us today for more information!