Are coloured diamonds a good investment?

  • Diamonds have proved to be a stable and thus good investment.

  • Coloured diamonds are much rarer than colourless diamonds.

  • The interest in coloured diamonds is therefore larger than the current supply.

 

 

People used gold, silver, and precious stones as a payment method for goods and services in the past. In the 13th century, the concept of paper money was introduced in Europe, but real banknotes only appeared in the 17th century. Today, money is nothing more than a number on a computer so, many wonder what our money is really worth. Wouldn’t it be wiser to invest in something tangible to weather any future economic storms?

 

Money in other forms

Throughout the years, diamonds have proved to be a relatively stable and thus good investment. When talking about diamonds, people immediately think of white or colourless precious stones. However, you can buy diamonds in every colour imaginable. The diamond’s colour also affects the value of the diamond. Their market value is determined by the prices during an auction. The rarity of the colour makes these diamonds a great investment.

Collecting coloured diamonds

Natural coloured diamonds are much rarer than colourless diamonds. The Argyle mine in Australia — the main source of pink diamonds — closed in 2020. Besides being a good investment, collecting coloured diamonds is a very interesting occupation in itself. Worldwide, more and more investment groups focus on coloured diamonds for the diversification of their investment portfolio. The demand for coloured diamonds exceeds the current supply, making them a great investment.

Selling coloured diamonds

Precious stones are a portable form of wealth. If you bought them because they’re a good investment, naturally, you would want to resell them one day and enjoy another form of wealth. There are different possibilities, such as reselling them directly, via an auction house or donating them to a museum. In general, people opt for the auction house, where a huge number of potential buyers can view the diamonds — and the offers can be enormous. For example, in London, a lot comprising a sapphire and diamond ring was sold for 458,000 USD, even though it was valued at 96,000 USD.

Coloured diamonds are a great investment, provided you have enough knowledge or good guidance to help you. So, contact our BNT Diamonds experts to start your diamond investment journey.

Author: Inge De Wee
Source: BAUNAT

With this article, BAUNAT strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.

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