Colored Diamonds Proving Their Worth As Investment Vehicles


Colored diamonds account for just 1 percent of the entire diamond market. And some industry observers estimate that there is just one carat of colored diamonds for every 100,000 carats of white stones. And if that was not enough to make colored diamond prices continuously soar higher, supply is falling while demand, particularly from collectors and investors, is rising. 
"If you look at the prices of colored diamonds over the past 10 and 20 years, you can clearly see that not only have they risen, but that they have actually soared. Demand is mainly seen for certain sizes and colors since their rarity means that prices will necessarily be high so there is a limit to what even wealthy consumers will pay."
Among the advantages that fancy color diamonds present are that they are internationally recognized, well established goods that have a long history of being collected and traded for hundreds of years. In addition: "Diamonds are small, they weigh next to nothing and they are extremely portable. Therefore, large amounts can easily be transported and concealed in emergency situations. 
Even just a little research proves that over the past 30 years, the price appreciation of natural fancy colored diamonds has dominated the market. Auctions results prove the strength of colored diamonds in today's market, not to mention that they have repeatedly broken auction house records for the highest price per carat ever paid at auction for a diamond or jewel. In addition, fancy color diamonds retain their value and beauty, they are durable, are extremely rare, and are a highly private asset – as well as being beautiful and wearable."  
Colored diamonds are bought as a long-term investment, meaning they are kept out of the market for lengthy periods. That in itself makes them even rarer, ensuring that the diamonds, when they are put up for sale – sometimes only once in 20 years – will command extraordinarily high prices. 
Price list has no relevance because there are not that many colored diamonds available. The price of pink and blue diamonds is set by auctions, while the price of yellow diamonds is according to the quality of the goods and what is available on the market.
By our Israel correspondent Abraham Dayan
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