Why invest in Natural Coloured Diamonds
Why should I invest in these diamonds?
Natural Colored Diamonds are hard assets that possess the rare combination of beauty, uniqueness, rarity and value, are a great choice for any portfolio. There are several reasons why natural colored diamonds are a solid investment.
Many financial advisors recommend that investors place 10 to 20 % of their investments in tangible assets as a hedge against inflation and economic uncertainty. Along with precious metals, rare art and antiques, natural coloured diamonds are a mid to long term investment. In the last 20 years, demand for natural coloured diamonds have increased significantly, and has performed better then many hard asset acquisitions. They are durable, portable, and have an infinite shelf life. As supply is diminishing and demand is increasing, natural coloured diamonds will continue to perform well.
Performance
Natural coloured diamonds have proven to be a solid investment was unaffected unaffected by financial volatility and crash. History has shown that the increase in value of natural coloured diamonds is greater than that of many other purchases or acquisitions. The prices of natural coloured diamonds have increased steadily in the last 16 years.
Increased Demand
A booming middle class in emerging markets where demand is growing. Global demand for diamonds is forecasted to grow at a compounded annual rate of 5.1% until 2023.
Diminishing Supplies
There has not been a significant discovery of a new coloured diamond field in two decades, severely constraining the supply to meet the demands. Coupled with the announcement of the largest coloured diamond mine the Argyle Mine announcing their projected closure in 2018, the supply of coloured diamonds is diminishing, making these rare gems even rarer.
Tangible asset
Over the past 50 years, paper currency has had its buying power cut in half. The US dollar has lost 90% of it’s purchasing power since 1940. In more recent times, the euro has revealed how a volatile political state can greatly affect even the most stable economies.
Portable Wealth
It has been shown that natural coloured diamonds are a solid way to store wealth. They are among the most concentrated form of portable wealth. As a ‘wealth of last resort’, natural coloured diamonds have given a lifeline in devastating times, earning them the title of ‘crisis commodity’. Coloured diamonds are an investment for the generations to come.
Protection
The protection of wealth which a well balanced portfolio offers is dependent on the percentage of its total value that is made up of tangible assets. There are established scientific methods to grade natural coloured diamonds which regulates and protects the investment. Over time, tangible assets like natural coloured diamonds may prove to be one of the most stable parts of any portfolio.