The Impact of the Current Stock Market on Fancy Color Diamond Investments We have been getting a lot of questions about the current state of Wall Street and its impact on investing in Fancy Color Diamonds. The most comparable financial crisis we have experienced would be the market volatility experienced in 2008. At that time, the U.S. debt crisis, the Euro crisis, and political conflict in the Middle East were all happening at once, shocking our economy. We can now look back to see what the behavior was in the market to get insight into what could happen in the coming months. As major markets crashed, investors protected their wealth by moving their assets from traditional stocks and bonds to alternative investments. More specifically, actual, insurable, and tangible assets that remained undisrupted by market fluctuations. As it has been for at least the past 40 years, fancy color diamonds proved to be the most secure, attractive, and lucrative investment choice.
Fancy Color Diamonds continue to increase in value and when the bear markets roar, investors turn to the security of Fancy Color Diamonds. As you can see in the graph above, gold was also a tangible commodity that investors turned to. Unfortunately, political turmoil contributed to gold’s value decline beginning in 2012 following its strong inflation in 2008 when investors flocked to move their assets into gold. Fancy Color Diamonds, particularly Pinks, have remained not only steady but also increasingly profitable.
The reason for this is because the valuation of a diamond is based on the individual characteristics of the diamond itself and the rarity of Fancy Color Diamonds that keep their value highly appreciated. Fancy Color Diamonds remain independent of market behaviors, fluctuations, or credit.
The Impact of COVID-19 on the Fancy Color Diamond Market What is the most interesting right now is that the Fancy Color Diamond Market is already changing with the Argyle mine closing this coming year. The Fancy Color Diamond Market is seeing an even shorter supply, and as Fancy Color Diamonds are considered a more stable form of currency, demand is surely increasing as investors move their money from the stock markets to strong, stable commodities. In addition to this, access to mines, travel restrictions, government restrictions, and the many other factors introduced by the Corona Epidemic will ripple through this industry just like any other, with the difference being a rise in value as a result.
Fancy Color Diamond Investments After the Argyle Mine Closes After the mines close in the coming year, diamond investing will become more mainstream, especially after diamonds such as fancy pinks become rarer. Supporting this assessment is a statement on the FCDR website:
“The growing number of high net worth individuals worldwide has been a fundamental game-changer in the demand for fancy color diamonds. Strength and projected growth of the luxury sector have contributed to the steady, decade-long increase in sales of fancy color diamonds and their ability to withstand market volatility.”
Considering the current state of stock market declines, this is the best time for considering an alternative investment that has proven over time to be a safe haven for investors, especially as we do not know how the coming year(s) will reflect in the markets. This investment is something you can hold, easily ship or transport, or turn into wearable jewelry. Because of their durability, fancy colored diamonds can be used and enjoyed without depreciation -depending on the source of purchase- unlike other collectibles.
Why Should Investors Trust Diamonds in Today’s Market? Fancy Color Diamonds as an investment can be trusted because of the inherent nature of supply and demand – this isn’t a commodity that is hidden somewhere, only to eventually end up on the market – there will always be more demand than supply, especially with the increasing depletion of the world’s mines that produce colored diamonds. Investors will always want their funds to remain secure. Fancy Color Diamonds are a long-term investment. The longer it sits in your possession, the more it will increase in value. Additionally, a diamond can be insured, which is a reassuring factor for investors who are seeking security during this turbulent market.
What Investors Should Do Now The most important things you can do now as an investor is to not panic, continue managing savings for retirement, catalog your current stocks for a thorough review, and move into investing in fancy color diamonds at whatever capacity you can while you can still take advantage of the current prices while we are still in the beginning stages of stock readjustment and private sellers are liquidating for cash. The pricing for fancy color diamonds will only increase. Getting access to investment-grade fancy color diamonds is a very rare opportunity, as well as a safe and secure one. There might never be a time quite like this again to take advantage of such an incredible investment opportunity.
If you are interested in purchasing or selling fancy color diamonds as an investment, please email Rayah Levy at rayah@fcdinvest.diamonds to discuss your personalized long-term luxury investment asset strategy.
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