Colored diamonds are unique even in a world of uniqueness. By doing just a little research on the internet and other places, you can verify the fact that colored diamonds have increased in value on average more than 15% every year. Some very unusual stones have increased in value much more than 40%. Unlike most products, the supply of colored diamonds is very limited and the largest mine for colored diamonds, the Argyle mine in Australia has less than 10 years of viability. Unfortunately for colored diamond lovers, there has not been one significant diamond mine discovery in more than twenty years that has a large production of colored diamonds.
Every colored diamond has its own distinctive shade of color regardless of its hue or carat weight. For those who invested in colored diamonds in the past, they have seen increases in value of 15-25% year after year. We can expect the same or greater increase in value in the years ahead. This is especially true for the pink, purple, red, and violet diamonds that Argyle is famous for. As the two powerhouse economies of China and India emerge, the global demand for diamonds is set to continue rising. The yearly demand from India and China is expected to rise more than 20% each year for the next 5 years, catching up with America as a major importer of polished stones (De Beers).
The Asian cultures have always appreciated colored gemstones. Now Asian collectors have an added incentive as they have realized that colored diamonds are a vehicle to protect and increase wealth. Colored diamonds have increased in value without failure for more than 30 years. With a dwindling supply and an increasing demand it is logical that we shall continue to see strong ROI in this area.
Colored diamonds are a great investment, made better when the gemologist is connected to the right suppliers. It is a well known fact: The money in diamonds is made in the buying. Interestingly, when it comes to unusual and rare diamonds, the retail stores and labs rely on dealers who have access to these diamonds to tell them the value. There are less than fifteen dealers in the world who have the skills and knowledge to accurately evaluate these rare and beautiful stones.
Appraisal companies will look for “comps" and will ask for direction to evaluate a stone. For two examples of excellent 'comps' see below two recent sales. One is for a 24 Ct Fancy Intense Pink Diamond VVS2 and the other for a 1.57 Fancy Red Diamond. The fancy pink sold to a London diamond dealer for $46,000,000 and the 1.57 is listed to sell from a dealer for $3,000,000. (By typing in the basic information you can find detailed accounts of the transaction on Google).
Sotheby's Geneva Sella 24.78 ct Pink Diamond for $46M to Graff. New Owner Names his Diamond 'The Graff Pink'
Nov 16, 2010 4:10 PM By Jeff Miller
RAPAPORT... Sotheby’s Geneva realized a world auction record price for any diamond and any jewel when it sold an exceptionally rare 24.78-carat, VVS2, fancy intense pink diamond of the purest, vibrant hue for $46,158,674 (CHF 45,442,500). Four bidders competed for the pink diamond, but the winning bid went to Laurence Graff. Shortly after the sale, Graff named the diamond “The Graff Pink” and stated, “It is the most fabulous diamond I’ve seen in the history of my career and I’m delighted to have bought it.”
Commenting on the sale of the pink diamond, David Bennett, chairman of Sotheby's Europe and the Middle East jewelry department, said, “Tonight’s spectacular result demonstrates that truly extraordinary objects will bring truly extraordinary prices. This outstanding pink diamond combined exceptional color and purity with a classic emerald-cut and fully deserves the exceptional price of $46,158,674.It was simply one of the most desirable diamonds I have seen during my 35-year-career at Sotheby’s.”
This diamond came to the market from a private collection, and has not appeared on the open market since it was purchased some 60 years ago from Harry Winston.
The Geneva sale also set a record total for Sotheby's at $105,051,728 (CHF 103,421,800), a figure well above presale expectations of CHF 65.8 million to CHF 95.3 million. The sale of Magnificent Jewels was 82 percent sold by lot. Top prices were achieved for important white diamonds, rare colored stones, jewels with important provenance and exceptional signed pieces.
The second top lot of the sale realized $2,814,163 for a 4.59-carat, pear-shaped fancy intense pink
diamond ring, followed by a 20.16-carat diamond ring by Graff, which sold for $2,757,281. The fourth top lot was an important diamond ring by Harry Winston featuring a 20.18-carat emerald-cut center stone flanked by tapered baguette diamond shoulders, which sold for $2,472,868. A diamond necklace and brooch signed by Adler rounded out the top five lots at $2,359,103, and featured a graduated line of 39 brilliant-cut diamonds.
An article from the July-August 2011 edition of JCK magazine. (JCK is a major trade magazine for the diamonds industry)
Best Investment Stones Red and Purple Diamonds
If recent auction records set by extraordinary diamonds have taught us anything, it’s that remarkable gems are a good investment. So imagine the excitement of New York City–based Global Diamond Group when it showcased two extremely rare natural color diamonds at LUXURY at JCK: a 1.57 ct. oval-modified, brilliant-cut, fancy red stone, set in a platinum ring with a halo of colorless diamonds, and a loose 3.02 ct. cut-cornered, rectangular- modified brilliant fancy intense purple diamond. Both stones—which hail from Africa—are the utter definition of incomparable. In fact, the rocks flat-out stumped many passersby, some of whom asked if they were rubies. “After they heard the price, they had no more questions,” a company rep told JCK, pegging the cost of the fancy red diamond ring at roughly $3 million …wholesale. (The diamonds nabbed the interest of two American buyers in particular.) Bonus: Both stones come with an analysis by famed diamantaire and author Steven Hofer. --JH
According to powerhouse mining company Petra diamonds; “Most mines are past peak performance; mining firms are actually cutting back in production to extend the life time of their mines. Over the past
25 years more than 12,000 kimberlite deposits have been discovered throughout the world and less than 1% has contained enough diamonds to become economically viable.”
Bloomberg states; “Out of 170 diamond mining companies there are only 25 in production.”
Evy Hambro, manager of the $6.7 billion World Mining Fund in London for Merrill Lynch. Has said; “Diamonds have the best fundamental. The gap between supply and demand is much greater compared to other commodities.” (Bloomberg)
“If we continue to diamond mine at this rate we shall run out within 20 years”. Gareth Penny, ex Managing Director of De Beers was quoted in 2010.
“Diamonds could very well outperform base metals in the coming years” According to the brilliant Andrew Ferguson, manager of the $313 million fund at New City Investment Managers in London. “Given the
huge increases in demand and the imbalances in supply, I expect good returns.” (Bloomberg)
The world’s largest producer of yellow diamonds is reported to be the Ellendale mine in Australia. It has an annual production of less than 21,000 carats of fancy yellow diamonds. The total carat weight of intense and vivid yellows is unpublished, but is considerably less. (Telegraph)
One of the world’s leading jewelers, Tiffany & Co in 2010 agreed to a 25% price increase for yellow stones from their supplier in order to incorporate yellow diamonds in their own jewelry range. (Tiffany & Co).
Louis Pearl G.G.
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