Rayah Levy, 2018
Below is an article recently published by Robb Report that echoes the message I’ve been emphasizing for almost a decade. Similar to when I previously predicted the trajectory of the Art Market, the diamond market is quickly being cornered by ultra-wealthy royals, HNW families, and strategic investors.
Thankfully, while I have been publishing education all these years, I’ve also been cultivating invaluable relationships with other leaders in the diamond industry and still have unique access to some of the most noteworthy and rare natural diamonds discovered throughout history. Through my relationships with family offices and private individuals, I have the privilege of having special access to diamonds that are not being publicly offered.
Below is an excerpt of the most important parts of the Robb Report article, How to Build an Investment-Grade Jewelry Collection. I’ve highlighted the most integral information in case you are reading this on the go. The full article is also linked below, in case you would like to investigate further.
The article begins by announcing that a high-profile investor recently announced his intent to invest $100M+ in gemstones. This is both exciting and a worthy cause to ignite a sense of urgency, as natural diamonds are a finite commodity that take millions (and in some cases billions) of years to form and be found. What we saw at the auction houses at the end of 2023 was a complete buying frenzy that underlines this sentiment - I will post an article dedicated to reviewing 2023’s Auctions next.
Another trend I am noticing with the current activity and analytics is that younger collectors are now purchasing diamonds that they can wear and enjoy. If individuals are not careful with their investments, they can damage them or lower their value due to wear and tear. Diamonds are strong, undoubtedly, but they are not indestructible and it is easier than you’d think to scratch or dull a diamond, which can significantly lower its marketable value.
Finally, there are many dealers and brokers out there who confuse investment diamond information and create noise. Many publications we come across that attempt to discuss diamonds as an investment are not actually talking about investment-grade diamonds as a commodity. Also, There has been breaking news of a scam in which lab-grown diamonds are being sold as natural. Because of these factors, we stand firm that colored diamonds are not an investment most investors can manage on their own - having the right advisor is critical.
At FCD Invest, we review each of our partners through an intense due diligence process. For each diamond considered, we pull GIA Reports, order more than one appraisal, and research provenance and past ownership to ensure that all diamonds are, in fact, investment-quality and viable for trade. We then manage the deal from start to finish at all times and ensure proper transportation, security, insurance, and storage. We have been the leading experts in our industry and one of only a small handful of companies that specialize in diamonds as an investment, while other companies are just now trying to catch up.
Contact us today if you would like more information on diamonds as an investment and a storehouse of wealth, or indulge your thirst for knowledge by reading some of our past articles.
Warmest always,
Rayah Levy - President, FCD Invest
Excerpt from Robb Report:
When a Middle East royal recently let it be known that he was looking to invest upwards of $100 million in gemstones, word spread quickly, and soon more than one well-connected dealer was jetting to the region with heavily insured valises. What might be most intriguing about this royal’s request is not the nine figures at play or even that all that cash was to be stashed in diamonds, rubies, and the like, but rather that this kind of high-dollar venture is not uncommon; in fact, it’s a growing trend. Top brokers say that since the start of this year, which has been marked by chaotic global events, more and more clients have been looking to invest in hard assets—namely jewelry and loose stones.
Jewelry, after all, has long been a safety net. When currencies were devalued and stock markets plummeted, a top-quality diamond or other precious gem remained global currency. That still holds true today. “With bank and crypto failures and inflation, I definitely see more interest from clients who are thinking of jewelry as a store of wealth,” says Lee Siegelson, the current proprietor of the century-old New York dealer specializing in vintage pieces and rare stones that bears his family name.
When someone has tens of millions to invest, historically experts have advised putting it into fancy-colored diamonds and untreated rubies, emeralds, and sapphires—essentially the equivalent of blue-chip stocks. For those who have followed that advice, relax: Their stability hasn’t changed. But as the number of billionaires expands exponentially and people who were never serious collectors seek to diversify their portfolios with jewels, the most prized gems are becoming scarcer.
And that’s driving a shift in the market. New opportunities are emerging, and new collectors are embracing a very different approach to jewels than that taken by their parents. They still want rare pieces, of course, but they’re after bijoux they can wear and enjoy, not banish to a vault.
Only a small coterie of dealers have access to the most desirable untreated gems and pedigreed jewels. Securing one is akin to searching for a Picasso or a Giacometti: Some of the best examples may never come up for sale publicly, quietly trading hands between collectors. When the call that something interesting has surfaced comes, the dealers are ready to jump on a plane at a moment’s notice. It might not be offered again, Siegelson says.
Regardless of whether your motivation is profit, collection-building, or merely possessing a show-stopping trinket to wear with abandon, approach the field with the same clear-eyed logic you would your stock or real-estate portfolio.
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Please email FCD Invest at info@fcdinvest.diamonds to discuss your personalized long-term investment strategy. For more information on Fancy Color Diamonds as an investment, please visit our Fancy Color Diamond informational page linked here.
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