Diamonds are not only an adornment, but also an investment, showing a high price increase in the long term and protecting savings from currency and country risks. The most suitable for this are colorless diamond of high color and quality characteristics, which over the past 15 years have grown in price by 2 times, as well as fancy color diamond, which have tripled in price. Such data are provided by the company , which conducted the study.
The increase in the price of diamonds has been and will be provided by fundamental factors.
The diamond from which diamonds are cut are becoming smaller every year as the known deposits are depleted. Demand for diamond is growing as the size of the middle class grows, primarily in China and India.
A separate indicator of the increase in value is the rarity of the instance. Among colorless diamonds, the combination of high color and quality characteristics is least likely to occur: colors from D to G, that is, from completely to almost colorless, and qualities from IF to VS2, from perfectly transparent to containing minor inclusions that are invisible to the naked eye. Stones with such characteristics, the mass of which starts from 4 carats, are considered the most suitable for investment purposes from colorless. They show the highest returns in the last 15 years.
Even more profitable in terms of investment are colored diamonds, as they are extremely rare. Only one of 10 thousand stones has a beautiful pronounced color, and intense color can be found even less often – in one case out of 25 thousand. Rarity determines the level and dynamics of prices: since 2005, colored diamond on average tripled in price. At the same time, the cost varies greatly depending on the specific color. The most common among the colored ones are yellow; their price growth remains at the level of colorless diamond. The rarest are pink diamond, they have grown in price by more than 4.5 times over 15 years.
Both colorless and colored diamonds on the horizon of 15-20 years show a steady upward trend. Growth slows down or is interrupted during periods of industry or global crises, however, it is invariably restored in subsequent years due to the self-regulation mechanism developed in the industry. In quiet periods, diamond grow in price by an average of 4 percent per year, and during global crises, they do not become as cheap as many other assets.
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