In the last decade, the number of pink diamonds on the market has increased. This is largely due to the discovery of the Argyle deposit in Australia, where pink, bright yellow, and brown diamonds are often found. Among all colored diamonds certified in the laboratory of the Supreme Diamond Council (Belgium), the percentage of specific colors is as follows: yellow -42%, pink -18%, brown -13%, orange -8%, purple - 7.5%, green - 3%, blue - 1.5%, red - 1%, other - 6%.
The approaches to assessing the purity, cut, and mass of colored diamonds are the same as when evaluating ordinary diamonds. When describing a color, tone and saturation are denoted by the following terms: "weak", "very light", "light", "fantasy light", "fantasy", "fantasy dark", "fantasy thick", "fantasy intense" and "fantasy bright".
The sale of large colored diamonds is usually carried out through international auctions. The prices for such stones are very high. Thus, an intense blue diamond weighing 2.18 carats was sold for 181,529 US dollars per carat, an intense pink weighing 1.57 carats for 125,032 US dollars per carat, a saturated yellow weighing 5.04 carats for 28,866 US dollars per carat.
Interesting comments from many angles in this thread so far:
According to her article, from 2010 to 2020, pink diamonds showed the highest level of profitability at 189%, blue diamonds increased by 89%, and yellow diamonds by 17%.
It looks pretty good until you read deeper and see that pink dropped somewhat last year, and blue took over as the color for investment. My thoughts, as always, are that such super expensive diamonds may be an excellent investment for those who have the means to play and do not mind if prices stagnate for ten to twenty years. For those with less bankroll to play with and who may have to liquidate quickly, I think this is a risky investment, as if you need your money in a hurry, you will most likely take a bath.
Also, while multi-million dollar diamonds can be a good investment, smaller ones will always have less growth and will still be harder to sell, as they will not fetch the high prices often achieved at auctions.
I welcome other opinions from both the trade and the public. What do you think?
Aren't the roses running out? What about the top browns? Have they ever risen?;-)
Although this is serious, I understand pink and blue because they are rare and in-demand (who would not want to look beautiful pink or blue?) But I'm not sure I am buying an investment thesis when it comes to yellow.
Pink, blue, violets/purple and red are the only colors "investment grade" in my books. Yellow, not so much.
Never. Why? Let us say a good 20 years pass - enough time to get a meaningful return on investment. Well, guess what, by then, I'll be too crazy to enjoy the return on investment, and this money I get will be spent on a babysitter for me.
Diamonds have very little inherent value. As the prices of pink colors rise, the number of people willing and able to buy pink ones falls. Eventually, the market will stabilize. Then the star of the month comes out in sapphire, and gradually people who bought pink as an investment have to sell and have to take a lower price. This is pretty much normal. If something strange happened, like someone developing a new supercomputer that ran away from pink diamonds, there could be a constant price increase, but this is extremely unlikely. Even my ending does not count because sims and synthetics are "the same thing" unless you tell someone, and this is a social factor, and social factors are where most of the value of diamonds comes from.
Of course, if you could guess the next big thing before it gets big, you could make a fortune, and people did. However, you better be an expert. Most people are better at guessing the winners of stocks of companies in their industry. If you are a janitor, buy this stunning new floor polish stock.
To me, any seller advertising diamonds (of any color) as an investment is offering a misleading statement.
The difference in price between the "requested" and the hard cash offer can be dramatic.
Sellers are well aware of this, so presenting diamonds as a financial investment seems like a false advertisement.
Let's say a seller offers a diamond in a retail environment (store or website) for 10 thousand dollars. Let us say a dealer bought a stone for 8 thousand dollars.
It might be a reasonable investment if they could wait until they found a buyer for $10,000. It could take years (literally)
If they have to sell for cash, it usually involves selling into a trade.
They may be lucky to get 6 thousand dollars - probably even less.
If I have an investment and I need to sell, I want an investment that can be liquidated predictably. For example, even if you have to incur a loss by selling shares, the method of sale is guaranteed.
There is no doubt that some pink and blue wholesale prices have risen sharply over the past ten years. However, given the difficulties faced by the consumer when selling, it is not easy to consider them as a financial investment.
After 2008, I softened my position a little.
If a person can lose 50% of the shares in a day, a diamond that brings pleasure seems like a good investment in itself.
In addition, they have a better value than almost any other consumer product.
But still not a big investment in a monetary sense.
There are two sides to this wink. If a consumer needs to sell 10 smaller diamonds at $10,000 each, he may be in a stronger position than if he had one stone worth $100,000... but maybe not :)
Keep in mind that you can buy and sell diamonds at a profit. I know dozens of people who do this for a living, but it is very different from what "investors" usually plan if you look at how they do it. They advertise.
They rent or buy storefronts. They carry inventory.
They spend millions on their websites. They have full-time employees, and some have been doing business for decades to build a reputation. They are working hard on it. It is difficult to make money, and trading diamonds has been a marginal business lately. They are significantly behind the NASDAQ.
Ah, but fancy colors are better. They are expensive boiler rooms. 10-20-30% in a year happened! Look at the prices they get!
Okay, look. A fabulous pink stone worth $1 million at auction will cost you $1.2 million at large auction houses. Sell it, and you will get 800 thousand dollars. This is with zero change of "value". This is what the seller got in your transaction. It's actually a little worse because of expenses like insurance and shipping while you keep it. Even if it drops by 50% while under your care, you WILL STILL lose money.
- Sometimes, luck plays a role in acquiring natural treasures. I was at GIA as a student in residence back in 1975. I came to one of my diamond suppliers, I was selling diamonds on the side for living expenses while my wife and I were visiting GIA, and he had an antique ring with a light, fancy blue diamond. I bought it for less than $2,000, got a small chip in a diamond, losing 0.97 to 0.95 carats in weight if I remember correctly. Then I set the diamond in solitaire, which Reza liked. I put the sapphire in the original ring and eventually sold it at auction for $100 more than I paid for the ring and the diamond.
Two or three weeks after buying it, the seller called me and offered me $5,000 for a ring and a diamond. By the time he finally figured I did not want to sell it, he had received $10,000. It seems he was pretty new to the business and did not understand the value of color. His father-in-law was looking for such a diamond and had a client who would pay $15,000 for a diamond, and he was boiling that his son-in-law gave it away.
At that time, I did not know anything about the meaning of color either. I just knew Reza liked it, so I negotiated hard and bought it for her. When he called, she was in the room and kept nodding her head, not with every higher price. A few years later, after the color became famous, she again declined offers for her diamond. The highest figure was more than $ 30,000.
As for the investment, it was terrible. She will never let me sell it as long as she lives, and if she is evil enough to die in front of me, I will never sell it either. I will give one of the children instructions to be given to one of the granddaughters when they are old enough to appreciate it. It would break my heart to leave the family after all the joy he brought her over the years.