Did you know investing in color diamonds id highly profitable?

Did you know investing in color diamonds id highly profitable?

Most investors used to put money in gold or silver, which is a safe investment in their view. But do you know that investing in color diamonds is even more safe and profitable? Here are some hints you need to know about fancy colored diamonds investment and how VITALE 1913 will help you to choose the best investment option made for you.

Color diamonds are always an efficient investment solution. Indeed you could have chosen to place your money in gold, but you need a firm and steady form of investment. In 2008, gold prices went down 30% while white diamonds decreased from 20%, whereas fancy colored diamonds faced a slight increase of 3 to 4% during the identical time laps (Source: Caratsdirect2u). Moreover, in the last thirty years, color diamonds have never lost their value. We can easily say that fancy colored diamonds’ court is one of the most stable.

By considering different color diamonds, we can differentiate several types of colors. The most desirable colors are red, pink, blue, and green color diamonds but diamonds come in all the rainbow colors. These red, pink, blue, and green diamonds are scarcer, which is difficult to procure. Only 2% of diamonds mined in the world are fancy colored diamonds and mostly come from the Argyle mine, based in Australia, located in the North of Perth. This fact has significantly increased the value of fancy colored diamonds. Even the smaller fancy colored diamonds are overpriced, and you will need to shell out several million euros for acquiring larger stones.

Then, we can easily find brown and champagne diamonds; still, they are not recommended for investment. 80% of this category of color diamonds come from the Argyle mine as well. This mine is forecast to stop its activity at the end of 2020 (Source: Rio Tinto), and most of the red, pink, cognac, blue, violet, brown, and champagne color diamonds are from the Argyle mine. Regarding the red diamonds, which are the top fancy color diamonds, it is said that it exists only 20 to 30 red diamonds in the world. 

The most famous fancy colored diamonds are the Pink Star diamond, its weight is about 59,6 carats and was sell at auctions for 66,8 Million dollars. The second one is the legendary Oppenheimer Blue, a blue diamond of 14,62 carats that found a buyer at 51,3 Million dollars.

There are many attributes to take into consideration to determine the exact color of fancy colored diamonds, and it should be done by an expert. The GIA (Gemological Institute of America) deliver certificates for all color diamonds and uses many terms such as Faint, Very Light, Light, Fancy Light, Fancy, Fancy Dark, Fancy Intense, Fancy Deep, and Fancy Vivid to describe the intensity of color in the diamonds, with Fancy Vivid being the most desirable

(Source: Leibish 2019)

So why should you invest in color diamonds?

 

  1. First, color diamonds are known for their high robustness; they are impossible to damage and easy to transport and store. Indeed, diamonds are the most precious stone on earth; they reach high values and can easily fit in a

  1. Then, as we said before, fancy colored diamonds are scarce. For 1 carat of colored diamond, 10,000white diamonds are. The scarcity of color diamonds increases their value, considering that the Argyle mine will close very soon. It becomes tough to procure due to many old mines that are closed, and there are not many new mines that open. Indeed, the world’s natural reserves of diamonds are not infinite.

  1. Fancy-colored diamonds can be resold anywhere in the world, in any currency. Demand is much higher than supply, and if you are patient enough, you will double their value in just 4 to 6 years.Auction houses already proved it; this is a long-term investment, of course, but it is worth it.

  1. Color diamond investment is also an excellent way to enjoy the money you save. After having purchased your colored stone, you will decide whether you prefer to mount it on a beautiful jewel tailored for you so that you can enjoy a unique piece of jewelry. Or you could opt to store it in a safe. Ladies, for sure, will prefer the first It’s also an excellent way to remind you of the handwork you provide and give you a chance to enjoy your asset.

  1. Color diamonds investment will also respect your privacy; certainly, diamonds can be easy stored without any obligation to share information publicly.

  1. Fancy-colored diamonds are very safe. As we saw before, color diamonds prices never decreased in the past thirty years. Unlike colorless diamonds, colored diamonds do not have a fixed price. Auction prices determine their market value. The scarcity of color diamonds and the fact that there is no new offer on the market lead to an increase in price.

Our Expertise

 

Thanks to his passion for finance and trading, Alberto Vitale has a considerable background and strong knowledge in this field. Moreover, since 2012 he took over his family business and became an expert in high-jewelry and investment diamonds. He completely upgraded the brand image of VITALE 1913 and wanted to give a new dimension to his family business. So Alberto started offering dedicated services to his clients and giving them the best advice always to deliver them the best quality service experience and offering tailored high- jewelry. Alberto and his team of gemological experts will provide you with the best advice to find the perfect stone that will suit you. We also have an international network of professionals who can buy and sell rare and precious stones: based in Monaco plus a buying office in the Antwerp diamond bourse and selling branches in London and Tokyo.

VITALE 1913 also offers a wide range of services in storing and transporting precious goods with fully covered insurance solutions.

 

Do not hesitate to contact us for any information you may need and come to visit our beautiful showroom in the heart of Monte Carlo: 5 bis Avenue Princesse Alice, 98000 Monaco.