WHY INVEST IN FANCY COLOR DIAMONDS?
Fancy Color Diamonds and gems are some of the world’s most finite resources for commodities. This commodity can be bought, sold, or held for long-term gains. Its currency value is global and they can be sold around the world in any currency.
Diamonds are a tangible asset. You can physically hold onto your investment, you can mount or set your stone in jewelry to wear and enjoy as it appreciates. Some of the benefits of being a tangible asset are that diamonds are small, easy to store, durable, easy to transport or ship, and you can pass them on to your heirs as personal property. Natural Fancy Color Diamonds are the most concentrated form of wealth on the planet. One million dollars of diamonds can fit into your pocket and weigh less than a gram.
No matter what the global economy looks like, diamond pricing is independent of other investment markets – they are even independent of their own overall market when valued against other natural fancy color diamonds. With today’s unpredictable stock market, diamonds are a more predictable alternative with long-term benefits outweighing other asset classes.
Each diamond’s assessment is unique based on known factors. Each diamond is independently assessed based on Desirability/Consumer Demand considerations, Hue (color), Saturation, Weight (carat), Shape (Cut), Inner Grade, Make (Ratio/Color Dispersion/Depth), Clarity, Undertone, Fluorescence, Esthetics of the GIA Report & Matching Pairs, and Provenance.
Natural Color Diamonds have a history of steady appreciation. In 2008, when gold fell 30% and white diamonds dropped 20%, natural fancy color diamonds did not fall, rather, had a small rise (3-4%) in appreciation. For the past 30 years, fancy color diamonds have continued to appreciate in value.
Investment-Grade Fancy Color Diamonds are qualified based on the most sought-after color, highest quality cut, clarity, carat size, provenance, saturation, and other specific characteristics. Not all Fancy Color Diamonds fit into the Investment-Grade category. Color Diamonds are exceptionally rare.
Think about what a diamond has to go through in order to end up in your palm... First, a very specific group of natural gases and compounds have to be within exact proximity of one another, coupled with immense heat and pressure about 90-120 miles underneath the surface of the Earth. Over 1-3.3 billion years, that pressure continues until the natural diamond is formed. A rough diamond’s formation can be disturbed due to a change in temperature or pressure. The gemstone could then wait for hundreds or even millions of years for conditions to be suitable for growth to continue. Most diamonds are brought to the surface through volcanic activity, so they have survived a trial by fire after being forced to the surface or dug out of a deep hole (some mines have one-way roads that take 40 minutes to get to the surface!), the diamonds are picked through to see which is the most impressive. The exceptional diamonds are then cut and polished, often losing 30% or more of the original surface, then somehow, after all the stars align, end up in front of an investor who can then hold the piece of nature's magic in their hand. Just think for one moment how incredible that journey is.
Fancy Color Diamonds are a finite natural resource, forged in fire inside of the earth over millions or billions of years, developing their natural colors based on many independent chemical variables. To hold a diamond in your hand is to hold a piece of true history. Naturally Fancy Color Diamonds cannot be duplicated, or mass-produced. In contrast, lab-grown diamonds (which are by definition, real diamonds) do not retain or increase in value over time. Eventually, we will mine all of the natural diamonds and within our lifetime, the majority of mines now operating will close operations. The only diamonds left will be the ones privately held.
SUPPLY AND DEMAND
As the known global diamond reserves continue to be mined and depleted while demand increases, a demand-supply gap is expected to develop in the coming years.
By 2050, there is a forecasted supply shortfall of some 278 million carats of diamonds worldwide. This will likely cause the price per carat to continue increasing for natural diamonds.
The Argyle Mine, which is the largest source of pink diamonds in the world – producing over 90-95% of the world’s Fancy pink diamonds – closed in 2020. This, among other major global financial factors, affects the market for fancy color diamonds and their value, which will impact the cost of diamond investments as a result of supply and demand.
Fancy Color Research Foundation
The FCRF is the primary source of objective data and information about fancy color diamonds globally. Their standardization methodology enables them to accurately assess fancy color diamonds’ price behavior and rarity, as well as to evaluate specific diamonds.
PASSING ON WEALTH
Sustaining the Value of Your Diamond Legacy
Passing your investment diamonds and heirlooms down to the next generation is a sound way to protect your legacy and preserve wealth. FCD Invest makes the process safe, reliable, and easy.
Our wealth managers work with you to sustain the value of your diamonds and secure their placement within your family and financial portfolio.
Our Heirloom Program helps your family members safely benefit from the financial wealth of the rare diamonds purchased. We help your family members understand how to manage and monetize their new diamond collection.
Passing diamonds down to heirs also includes educating them on what to do with their recently acquired collections. FCD Invest’s Heirloom Program strives to make the process flawless for you and all your family members. Your heirs receive a spreadsheet showing the value and details of each investment-grade diamond you've collected, with detailed information. They also receive recommendations of what to hold or sell to best meet their individual investment needs.