Rare Diamond Investor (RDI) presents a unique opportunity for individual investors who wish to add tangible assets to their investment portfolio.
Worldwide interest in natural fancy colored diamonds has steadily increased over the years due to the diminishing supply and ever increasing interest in these rare precious stones.
Private, Portable, Safe and Secure
A gemstone like a colored diamond is timeless, will last forever, and is considered portable wealth (a crisis commodity) that is also known to be the most concentrated form of wealth in the world. You can literally hold a multi-million dollar investment portfolio in the palm of your hand! In times of economic instability and social unrest, precious stones have helped in preserving the wealth of many over history and are considered to be a very stable asset in one’s portfolio.
A Balance of Security and Performance
In today’s volatile markets a majority of investors are looking to balance risk by moving towards more tangible investments that protect against inflation and paper assets. Hard asset investments into commodities such as gold and silver have been a successful endeavor over the past several years but are still exposed to volatility being connected to the credit markets and paper assets like ETFs and other funds, not to mention countries like India and China or financial institutions that at any time can dump bullion into the market.
Natural fancy colored diamonds are considered a low risk investment with very high upside potential, a balance of security and performance that cannot be influenced by any credit market or fire sales, in fact prices have doubled at dealer level on average every 5-7 years making them the fastest growing hard asset class in North America. As beautiful as they are, natural fancy colored diamonds can provide the security and investment potential investors are looking for when most other markets have become less reliable.
The Difference Between Buying Jewelry and Investing in Rare Loose Gemstones
It is important that investors understand the difference between paying retail prices for quality diamonds and paying prices offered by an investment house like Rare Diamond Investor (RDI).
Rare gem investment houses and wholesalers offer rare natural colored diamonds and precious colored gemstones for investment purposes (same quality) at a fraction of the price than brand names such as Birks, Harry Winston, or Tiffany. The markup on brand named jewels can be as high as 300%. Investors are more interested in loose investment grade diamonds and gemstones that are poised to appreciate in value more than anytime in history.
Answering to this growing niche market we have seen a growing emergence of rare gem investment houses that cater to investors looking to diversify their portfolio, partially due to the economic conditions that have risen on a global scale as well as an increasing awareness of this lucrative market. This provides an avenue for investors to enter this market at a comfortable level with the knowledge and confidence of quality and value in an investment grade natural fancy colored diamond or precious colored gemstone.
Diamonds & Gemstones vs Gold
Experts report that an increasing number of investors have been looking to diamonds and precious colored gemstones as an alternative to gold as another safe shelter for their money, amid financial uncertainty and economic and currency instability. As a form of investment, diamonds are performing far greater than alternative options such as real-estate, equities trading, and gold. Besides being a non-recorded asset and having zero correlation with equities markets and fiat currency; gemstones are the most concentrated form of wealth known to man. An ounce of top gem Burma ruby could be worth over $60 million at today’s prices. Compare that to gold. It would take over 40,000 ounces at $1500 per ounce or 2500 pounds to equal that amount. As a crisis commodity, gemstones definitely have their advantages over gold.
What Ensures the Appreciation of My Investment?
There has been a diminishing supply of natural fancy colored diamonds leading to rising prices. We’ve seen continued appreciation of these gemstones over history and significantly over the last 40 years. The demand for diamonds will boom in the next decade, driven primarily by the growth of the markets in China and India. China recently surpassed Japan as the second-biggest buyer of diamonds, behind the U.S., which consumed 38% of production in 2010. Demand in India grew 31% last year, while China rose 25% and the U.S. market expanded 7% despite a sluggish consumer economy, evidence of the growing popularity of diamonds as an investment.
With no new major discoveries with the exception of Canada, existing diamond mines are becoming depleted. Little new production has come on stream in the past decade, and the prospects for major new discoveries are considered slim. Also consider the scheduled closure of The Argyle Mine in Australia in 2018 which further emphasizes the significant opportunity that lies ahead for savvy investors. Natural colored fancy diamonds are poised to increase in value more than anytime in history!
Note: There is no such thing as a colored diamond mine. In any given year, 140 million carats of rough diamonds mined worldwide will result in the production of less than 15,000 for Pink, Blue and Green.
Note: The Argyle Mine in Australia is the largest producer of natural colored diamonds and represents a fifth of the world’s diamond production. 90% of the world’s pink diamonds and 80% of the world’s champagne, cinnamon and cognac diamonds are derived from this mine that is scheduled to close in 2018.
The Colored Diamond & Gemstone Market
The market for natural colored diamonds is a throwback to times when true asset value was a requirement for credit creation and financial markets were not as easily susceptible to speculation and uncertainty. With few exceptions, colored diamonds are bought and sold with hard currency, not credit! Therefore, bank credit has never been a contributing factor leading to fire sales or sell offs of any kind.
The colored diamond and precious colored gemstone marketplace is remarkably stable. In fact, colored diamonds have not gone down in value at the dealer level for more than 40 years! Prices have doubled on average every 5-7 years, more recently they have doubled every few years! They have weathered the financial storm of 3 major recessionary periods. Investors have seen increases in value of 180%-300% between 2001 and 2011. A $600,000 investment in a 5-carat fancy pink diamond in 2001 would yield about $3 million today.