More Moguls Investing in Natural Colored Diamonds
July 23rd, 2013 by Noam Flint
It’s no secret that major celebrities like Jennifer Lopez, Beyonce and Uma Thurman love the luxurious look and style of natural color diamonds. However, these gorgeous gemstones are becoming a big deal within the finance sector as well. According to Reuters, colored diamonds make up less than 1 percent of all diamonds found worldwide, giving them the uniqueness and rarity people continue to crave.
Natural color diamond industry on the rise
A change in consumers
While celebrities have certainly been the trendsetters in the colored diamond craze, the news outlet reports that today, many business moguls are in the market for the stunning gems. Yellow diamonds are the most popular, but professionals are also craving blue and pink stones as well, Bruno Scarselli, who represented one of the largest colored diamond specialists in the U.S., told the news outlet. He added that in recent years, Chinese moguls in particular have sought out colored diamonds.
“There are not enough diamonds to satisfy one-tenth of the new billionaires that every month are created in China,” Scarselli told the news source.
Aside from the sheer beauty of colored diamonds, experts believe there’s a spike in the desire to purchase these stones because currency around the globe is losing its value. In the past, investing in government bonds and stocks could prove profitable, but nowadays, diamonds are second to none. The gorgeous gemstone could even become as important as gold in terms of investments.
How to invest in diamonds
Even though it might seem easy to buy a diamond, buyers looking to make an investment out of the purchase should follow certain steps. According to the Independent, the best way to invest in these gemstones is to either buy colored diamonds to sell at a later date or to buy shares in diamond-mining companies to make a profit when the mines do. If you opt to buy pink, yellow or blue diamonds to sell later, it’s crucial to purchase gems from a reputable jeweler to help ensure you’ll make a profit when it’s time to sell.
On the same note, the experts also report interested investors could look into gaining exposure by way of diamond funds. However, this option typically calls for a large buy in with little to no return, as it’s a high-risk investment.
The pros recommend investing in a mining company since this type of investment is typically easy to manage and helps diversify some of the risk associated with a fluctuating market. A recent example was Petra Diamonds who found a 25.5 carat blue gem and their stock got a “Buy” recommendation.
To learn more, we highly recommend reading our diamond investing guide and its second part which is dedicated to investing in natural colored diamonds.
