FCDs vs. Stocks

What are the historical returns for fancy colored diamonds versus stocks? Historically, fancy colored diamonds have delivered significantly stronger returns compared to stocks over extended periods. For example, fancy intense pink diamonds larger than 3 carats showed a 443% gain over about 12 years ending around 2012. In contrast, major stock indices like the Dow Jones experienced much lower gains and more volatility during that time-frame.

More recently, since 2005, pink diamonds have surged nearly 394%, blue diamonds over 240%, and yellow diamonds close to 50% in value, with a compound annual growth rate of around 5% or more. By comparison, the stock market's long-term average annual return is roughly 7-10%, but with significant volatility and downturns. Notably, diamonds have remained resilient even during financial crises, showing less volatility than equities.

A study comparing returns from 1999-2010 found that fancy colored diamonds had an average annual return of about 5.5%, outperforming the Dow Jones and S&P 500, which had close to zero or minimal returns in that period due to market crashes.

Overall, fancy colored diamonds provide strong price appreciation with stability, less susceptibility to market speculation, and act as a tangible asset hedge. Stocks deliver growth potential but with higher volatility and risk, making colored diamonds a compelling diversification for wealth preservation and potential long-term gains.

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For more information on Fancy Color Diamonds and Fine Art as an investment, please visit our "Explore" page linked HERE