Colored investment diamonds
Colored investment diamonds are an alternative to traditional investment methods. By purchasing them, you gain value that can be passed down for generations. In addition to the natural growth in value, you can support your investment by setting the diamond in an original piece of jewelry.
Why invest in colored diamonds?
Investment potential
The investment potential depends on the color, clarity, and cut of the graded diamond.
Portability
A colored diamond can be transported anywhere in the world and will have the same value everywhere because its value is converted into US dollars.
Rare commodity
There are colors of diamonds that are considered some of the rarest commodities in the world. For example, red, green, or blue diamonds.
How are colored diamonds created?
Colored diamonds are formed very similarly to natural diamonds, at a pressure of 70,000 kilograms per square centimeter and a temperature of 1,300°. These conditions start the crystallization process, which takes place at a depth of 150 - 200 kilometers below the earth's surface. Most colored diamonds are formed in the presence of a unique essence, which is the gas present in the rock. For example, a blue diamond is formed only in the presence of boron and a low amount of nitrogen. Red diamonds are the rarest diamonds in the world, they do not require the presence of gas during formation. They are made of pure carbon. Their rare red color is caused by the disruption of the carbon atomic lattice.
Interesting facts and figures
While a 0.50 carat colorless stone has only seen a 10% increase in price over a ten-year period, which is a respectable appreciation, a 0.50 carat Fancy Intense Pink Argyle diamond has seen a 375% increase in price over the same period.
A 3.00 carat colorless diamond showed a 130% increase over a 10-year period
The 3.00 carat Fancy Light Pink diamond appreciated 318% during the same period.
The data provides empirical evidence that over a ten-year period, colored diamonds exhibit much stronger performance characteristics than any other alternative conservative investment on the market.
Economists are looking for a balance of risk vs. ROI in today's volatile market. People are preferring tangible investments that help protect against inflation and paper assets as alternatives. Hard assets like gold and platinum have been successful commodities over the past few years, but they have also shown extreme volatility.
Classification of colored diamonds
Brown (champagne) and black diamonds - These are the most affordable of the colored diamonds, and some may even be priced lower than clear diamonds.
Yellow and orange diamonds - They are in second place in terms of rarity and price - although they are relatively affordable, some shades, especially those with the fancy vivid color designation, are rare and expensive.
Pink Argyle Diamonds - Pink diamonds deserve a separate chapter, as they will soon be a scarce raw material. The only mine in the world where these diamonds were mined is now closed, so only the existing capacity of diamonds available on the market, or uncut stones, will circulate. Their occurrence is as rare as the occurrence of red diamonds.
Blue and Green Diamonds - The next level is occupied by blue and green diamonds. Blue diamonds are formed in the presence of boron in the rock and it always depends on its amount. Green diamonds are extremely rare and are formed in the presence of radiation in the rock, irradiation of the stone will give it a green color. Some green diamonds are further modified so that their color is more saturated.
Red Diamonds - The rarest of all colored diamonds in the world, red diamonds are the ones that get their color from a unique distortion in the carbon atomic lattice, which causes them to appear red in the color spectrum.