10 Reasons Why A Natural Fancy Color Diamonds Are A Wise Investment? (2024)

When looking for a solid investment many people turn to commodities such as gold, silver ornatural gas. Many people however are not aware that diamonds of all sorts, see:Investing In Type IIaDiamonds and Diamondsas an Investment, are worth taking a look into. In this article we give some of themain reasons why investing in fancy color diamonds is a good investment.

Given the closure ofmany financial institutions, the devaluation of many different currencies andthe general lag in world finance, investors are looking for a solid form ofinvestments, that is hard to damage and easy to move.

Why Investing In A Natural Fancy Color Diamond Is A Good Idea

1. ColoredDiamonds are extremely durable; they are the hardest substance known to man.They are not affected by changing temperature, humidity or shocks creating anasset that can be stored or transported without potentially damaging theasset.
2. Natural fancy Colored Diamonds are the most concentrated form ofwealth on the planet. One million dollars of diamonds can fit into your pocketand weigh less than a gram, where a million dollars of gold would weigh closeto 35 pounds.
3. Colored Diamonds are easy to store and transport.
4. Colored Diamonds can easily be stored in a safety deposit box,or set into jewelry and be enjoyed and easily transported anywhere in theworld.
5. Naturally Colored Diamonds can be sold anywhere and in anycurrency.
6. Colored Diamonds are exceptionally rare. For every 1 carat of coloreddiamonds, 10,000 carats of white diamonds are mined. Of the production of colordiamonds mined, less than 1% of color diamond production would be consideredinvestment grade.
7. Colored Diamonds are becoming more difficult to procure. Oldermines are shutting down due to less and less rough diamonds mined and fewer newmines are opening. The major producer of pink colored diamonds has predictedthat the Argyle Mine in Australia will be closing in 2018, due to the ending ofdiamond production in the mine. This fact alone means that there is a limitedamount to invest in and that means that the value of fancy colored diamonds willonly go up.
8. Natural Colored Diamonds have a history of steady appreciation.In 2008, when gold fell 30% and white diamonds dropped 20%, natural fancy colordiamonds did not fall rather had a small rise (3-4%) in appreciation. In thepast 30 years, fancy color diamonds have never depreciated in value.
9. Auction house records show that many important diamonds havedoubled in value every 5 years. Most investors consider natural color diamondsas a medium to long-term investment. Real appreciation of natural fancy colordiamonds develops over time. It is suggested to let this hard asset toappreciate for 4 – 6 years before reselling.

Four Facts To Take In Consideration

When thinking about investing in fancy colordiamonds, it is likely to be profitable when the four following facts are takeninto consideration:

1. The stone must kept long enough. Diamond prices only improveover time. Wear it and enjoy it in the meantime. Even pass it to your kids, ifthere is no necessity to sell.


2. The larger the diamond—the better, the reason behind this isthat is because most diamonds are found in small fractions, rather than bigsolid ones, thus making them rarer. So when you come across a diamond weighingmore than 5 carats, it is already considered “rare”, regardless what its colorgrade is.
   Remember, a 2-carat diamond costs more than 2 1-carat diamonds. Soeven your budget constrains you to purchase to light yellow or light pink, itcan still be highly valuable when the carat weight is ample.


3. Chances to find pure red, pink or bluediamonds are so little that when one such diamond is found, it carries greatvalue due to its scarcity. Most colored diamonds are found with underlyingtones. There are 27 standard hue names that GIA normally uses, but the lab alsorecognizes the 270 variations that could appear when the modifiers are countedin.
   Colored diamonds’ evaluation is different from the colorless diamonds. TheGIA uses terms such as Faint, Very Light, Light, Fancy Light, Fancy, FancyDark, Fancy Intense, Fancy Deep and Fancy Vivid to describe the intensity ofcolor in the diamonds, with Fancy Vivid being the most desirable.


4. The concept of investing in FancyColored Diamonds as a commodity is still a new idea in the mind of mostinvestors and it may not be easy to introduce. But with the above facts itseems to be a very solid investment with very good potential.

CaratsDirect2U offers alarge selection of natural fancy color diamonds certified and not certified.

Manyof our diamonds are accompanied witha GIA certificate. We stock many popular shapes such as: Round, Princess,Cushion, Emerald, Radiant, Asscher and Oval. Upon request we can mount thediamonds in one of our rings or pendants.

Ifyou have any questions about investingin fancy color loose diamonds, please feel free to contact our expert jewelersat1-800-557-7095 or [emailprotected].