Our Clients
Fancy Color Diamond investments are realistically not for everyone. There is an exclusivity about diamonds because they are classified as a luxury item, as well as being an investment vehicle. To make things even more complicated, some diamonds, even if they are natural or colored, does not necessarily make them investment quality. The good news is, you do not have to be a diamond expert in order to invest in diamonds - and lucky for you, if you are reading this, then you do know a qualified Fancy Color Diamond Asset Specialist.
Diamond investing is a very special opportunity offered to qualified investors… but what does that term mean? What criteria must be met? Let’s explore.
Diversified Portfolios
Natural Fancy Color Diamond investments are ideal for individuals who already have experience investing in more common financial investments, such as stocks, bonds, mutual funds, and ETFs, as well as commodity investments such as real estate, art, gold, watches, or other “alternative investments.”
Fancy Color Diamond Investments make the most impact when used as a tool to diversify your portfolio - FCDs are considered a storehouse of wealth, and when you hold investment-grade FCDs, it has been shown to outperform the various global stock markets. While the liquidity may take longer, the value typically does not decrease during market fluctuations and instability.
Fancy Color Diamonds are considered a long-term investment. We will expand on this statement further below.
Patient Investors
FCDs are a long-term investment. The recommended hold times are 5-10 years, but even more if you’d like to see higher returns. In the graph below, you can see that investments in Pink diamonds (excluding Argyle diamonds) can offer returns of up to 395% over time. Argyle diamonds offer even higher returns.
In viewing the graph below, you can also see that while stocks can offer more dramatic returns, the risks taken also tend to be extremely unpredictable, inconsistent, and at times, volatile. That is why Fancy Color Diamonds are a great addition to diversify an already established portfolio. They are a safe bet and are only becoming rarer each day.
Regarding rarity, if you purchase a diamond today from a specific mine, chances are that the mine may no longer exist by the time your investment matures. Diamonds take millions or billions of years to form under very strict and miraculous circumstances. To hold a diamond in your hand is to touch a piece of history that started forming during the beginning of our world’s creation.
When you decide it’s time to sell your diamond, expect a process similar to the timeline of selling a home or business. It does take time to sell diamonds because you are looking for a similar, qualified investor, with specific requirements.
This investment is not a good option for anyone who is desperate to make fast cash.
High Net Worth Individuals
FCDs are not a means to get rich quickly. They are safe investments and considered a storehouse for wealth. Anyone can buy a stock for $10 but because investment-grade diamonds can cost 5 figures or more, this type of investment is typically reserved for investors who already have capital to manage and grow.
In addition to this, you also need to be able to place your FCD assets in a secured location such as Malca Amit, and pay for the insurance while it is under your ownership. There are also other associated expenses, such as inspections, secure shipping, and annual appraisals.
Buying and selling FCDs can take time, so our ideal clientele is an at-ease investor who is not under pressure to sell quickly. Like real estate, diamonds cater to individual tastes and budgets. In order to serve our clients properly, the right seller or buyer needs to be found under the right conditions. Like most sales, if there is any hint of desperation, we lose our negotiating power.
Data from Fancy Color Research Foundation as of December 3, 2024