“In an age when the global wealthy are looking for portable, secure stores of wealth, diamonds should shine.”- CNBC
I came across a recent article in FORTUNE today about the current state of buying diamonds as portable wealth or investment purposes. This is a trend that has piqued the interest of high net worth individuals worldwide over the past several years, as well those looking for a safe place to put their money during these uncertain economic times.
The article takes the position that investment grade diamonds (usually rare, fancy colored stones) are only a sensible investment option for those educated about this subject, and diamond industry professionals who have an astute awareness of how to value a stone as there is no authoritative pricing index that exists in today’s market.
I tend to agree with their advice, but it’s worth recognizing ALL of the positive aspects that investing in diamonds can bring to someone who is looking to diversify their portfolio with tangible assets. Diamonds are one of the safest and most reliable 'un-commoditized' commodities of all time. Diamonds have historically gone up in value consistently, especially high quality stones, aka “INVESTMENT GRADE DIAMOND”.
Figure 1. Left: The Blue Moon diamond as the 29.62 ct rough discovered in January 2014 at the Cullinan mine in South Africa. Right: The faceted Blue Moon diamond, a 12.03 ct cushion modified brilliant, graded by GIA as Fancy Vivid blue and Internally Flawless; photo by Tino Hammid. Photos © Cora International.
I am often asked “what exactly is an INVESTMENT GRADE DIAMOND?” An investment grade diamond is usually classified as a perfect to almost perfect white, pink, yellow or blue diamond. The rarest rough diamonds are shaped by the most talented diamond polishers, offering the most demanding quality standards and potential for major price increases. Investment grade diamonds are more valuable and of higher quality than jewelry grade diamonds. Another necessity of an investment grade diamond is that it is certified by an accepted gemological laboratory with a certificate that displays the unique measurements and physical characteristics of that diamond. These types of stones are always "stand-outs" among their peers!
They will have perfect grades in color, clarity, cut, and symmetry. These diamonds sell for a higher price than non-certified stones, since they have been graded by an independent, certified gemologist. (All diamonds sold by ICON Jewels are certified by GIA.)
The beauty of investing in a diamond or gem, is that it is not like a bank statement, or checkbook, you can actually wear and enjoy the stones you purchase, making them ‘wearable assets.’ Plus, they have proven to be less volatile than stocks.
This is definitely a topic we will keep our eye on in the months to come, and please feel free to contact us directly with your specific interests or questions.
Cynthia Pinot Dinelli